New Home Sale Dip, but So Do Inventories

Sales of new homes fell to 530,000 units in June, a slight decline from the previous month's level but a 33% drop from that of the same month a year ago. However, in one positive development for the market, the inventory of new homes for sale fell to a 10-month supply, compared with a 10.4-month figure in May, according to statistics compiled by the Census Bureau and the Department of Housing and Urban Development. RBS Greenwich analyst Omar Sharif said the results were better than expected, noting that "perhaps the best piece of news was the sharp drop in the supply of new homes." He added that "more progress will have to be made on the supply front, but June's data provided a glimmer of home."