In June of 2018, sales of new single-family homes dropped to an eight-month low at a time when sales should be at their highest points of the year. Sales dropped 5.3 percent month over month marking the lowest monthly sales pace since October 2017.
Factors contributing to the decline include recent tariff disputes, which are raising the costs of building materials. “Uncertainty caused by tariffs and the talk of trade wars are making home buyers more cautious, and builders are taking note of this situation,” says Randy Noel, chairman of the National Association of Home Builders. “Not only are consumers and builders concerned about the current lumber tariffs but also the next round of proposed tariffs on a number of goods and services.”
The median sales price of new homes dropped to $302,100 in June, 4.2 percent lower than a year prior. In June, the stock of new homes rose to a nine-year high of 301,000 units, but supply is still just over half of what it was at the peak of the housing boom in 2006.