WASHINGTON, July 26 (AFP): New US home sales ticked down in June, government data showed yesterday, but the better- than- expected figures sparked a glint of hope that the worst housing slump in decades may be scraping bottom.
The Commerce Department said new home sales slipped 0.6 per cent to a seasonally adjusted rate of 530,000 units in June.
Though that marked a 33.2 per cent decline from June 2007, the monthly pace topped analysts' consensus forecast of 505,000 units.
Analysts said the report indicates the market may be working toward a recovery more than two years after the collapse of a boom fueled by loose credit and speculation.
Falling house prices and tight credit have brought the world's largest economy to a crawl, driving up unemployment and shaking confidence.
"New home sales look to be reaching a bottom and that is good news for everyone," said Joel Naroff at Naroff Economic Advisors.
Sales of new houses and apartments in June were at their lowest level since March, but the 0.6 per cent decline reflected a sharp upward revision in the May figure, to 533,000 units from 512,000 units.
The median price of a new home fell 2.0 per cent in June from a year ago to 230,900 dollars, but was up 1.4 per cent from May, the Commerce Department said.
The number of new homes for sale dropped 5.3 per cent to 426,000 units, a 10-month supply at the June sales pace. In May, inventory stood at a 10.4- month rate.
"We are starting to see some positive signals that sales, although moving lower, are converging to a market bottom. Drastic reductions in builder supply are starting to have a meaningful impact on inventory levels," said Brian Bethune, an economist at Global Insight.
