Sales of newly built single-family homes were down in June, the Commerce Department reports. Will the trend continue?

"While the housing downswing continues, with new-home sales down by a third from year-ago levels and builder confidence at a record low this month, today's report shows that builders are making some progress on reducing the inventory of unsold units," said NAHB Chief Economist David Seiders.

And even more progress should be made, now that the new economic stimulus bill has passed, giving a considerable tax credit to first-time homebuyers.

NAHB President, Sandy Dunn issued this statement, "This landmark bill contains several provisions to help home buyers, stop the slide in home prices, provide a lifeline to borrowers facing foreclosure, improve mortgage liquidity and bolster confidence in Fannie Mae and Freddie Mac. We commend Congress for working in a bipartisan fashion to provide much-needed relief to the American people."

Regionally, sales activity was mixed in June, with the Northeast and Midwest posting gains of 5.3 percent and 2.5 percent, respectively, and the South and West posting declines of 2 percent and 0.9 percent, respectively.

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Published: July 30, 2008

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