New home sales unexpectedly fell in June to the lowest level since April 2020 as buyers grappled with near-record-high prices.
Sales of new single-family homes last month fell 6.6% to a seasonally adjusted annual rate of 676,000, according to the U.S. Census Bureau and Department of Housing and Urban Development. The rate was 19.4% below the June 2020 estimate of 839,000.
Analysts surveyed by Refinitiv were expecting an increase to 800,000. Last month’s reading was revised lower by 45,000 to 724,000.
New home sales, which account for about 10% of the housing market, have fallen every month in 2021.
Homebuyers have been faced with record-high prices in recent months as surging input costs, including lumber, have made construction more expensive. Low inventories have also helped prop up prices. The median sales prices last month fell to $361,800, down from May's record high of $380,700. The average sales price fell to $428,700, the lowest since March.
The drop in sales came as new home inventory rose to 353,000, or a 6.3-month supply, the most since at least May 2020.