Decline in new-home sales was caused by lack of demand, not supply, says Zillow Real Estate Market Research.
This is because inventory of new homes on the market in June increased from 4.8 months to 5.4 months, while sales for new homes went down by 6.8 percent from May. Still, June’s sales were 18 percent higher than the same time last year.
Though new-home sales fell nationally, the Northeast experienced a month-over-month increase of 28 percent. The biggest drag came from the Western U.S., where new-home sales declined by 17 percent.