Sales of newly US built homes fell dramatically in June, despite the large optimism of the housing recovery, especially among the home builders. Many binary option analysts have suggested that the current home sales is a barometer of the US economy and its real recovery.
Signed contracts to buy new homes fell 8.4 percent from the previous month, according to the U.S. Commerce Department, although they are still up 15 percent from a year ago. However, a greater view of the picture provides the fact that sales levels are now at their lowest since January.
The biggest drop in new home sales came in the Northeast, down by 60 percent month-to-month. On the other side, the biggest June gains were seen in the Midwest.
“With new home sales at current levels 75 percent below peak and with a run rate near 50+ year lows, new home construction has bottomed, but there is still a long bridge between a bottom and a robust recovery, as existing home inventories (shadow and otherwise) remain elevated,” writes Peter Boockvar, an analyst at Miller Tabak.