New Home Market, Durable Goods Defy Gloomy June Views

Investor's Business Daily (07/28/08) P. A1; Stoddard, Scott
The Commerce Department reports that new-home sales declined 0.6 percent from May to an annual rate of 530,000 units in June, while inventories fell 5.3 percent to 426,000--which is the lowest rate since December 2004. At the current sales pace, it would take 10 months to clear out the supply, which is at a four-month low. "New-home sales look to be reaching a bottom," according to Naroff Economic Advisors chief economist Joel Naroff, amid optimism over a sign of possible improvement in the housing market. The median sales price was down 2 percent from a year ago at $230,900.