Purchases for new single-family homes fell in June for the second consecutive month, which suggests the housing market is still a ways away from recovery.
The U.S. Department of Commerce reported single-family homes in June fell to a seasonally adjusted annual rate of 312,000, which is 1 percent less than May's revised tally of 315,000. Seventy-six percent of the homes purchased in June sold for $299,999 or less, indicating that the market continues to favor investors and prospective buyers.
"You’re still dealing with a supply-demand imbalance that suggests home prices will remain under pressure," said Tom Porcelli, chief U.S. economist at RBC Capital Markets Corp. in New York, according to Bloomberg. "As unemployment stays high, it will be difficult to generate meaningful gains in home sales."
For families trying to relocate to a new home, it's not so much the cost of homes or the price of moving vans
and rental trucks that's inhibiting them from moving. Rather, some of these families are unable to obtain a mortgage because numerous financial institutions have tightened their lending requirements since the recession.