US new home sales in June increased by 8.3% month on month

24 July 2013 21:11  [Source: ICIS news]

HOUSTON (ICIS)--US sales of new single-family homes rose by 8.3% in June from May, the US Department of Commerce said on Wednesday.

In its monthly report, the department said new home sales were at a seasonally adjusted annual rate of 497,000, an increase from May’s revised figure of 459,000.

New home sales in June 2013 were up 38.1% from the June 2012 estimate of 360,000.

The National Association of Home Builders (NAHB) said new home buyers are returning to the market on firming prices, shrinking inventories and improving local economies.

“The takeaway from this report is that the housing recovery is solidly on track and isn't going to be derailed by slightly higher mortgage rates," said NAHB chief economist David Crowe. “After years of fence-sitting, buyers are back and are ready to move forward with an investment in homeownership.” Looking ahead, he said he anticipates further, though more incremental gains in sales through the end of this year.

According to the department’s report, the median sales price was $249,700 (€189,800), and the average sales price was $295,000.

The housing market is a key downstream consumer sector for the chemicals industry, driving demand for a wide variety of chemicals, resins and derivative products such as plastic pipe, insulation, paints and coatings, adhesives, roofing materials and synthetic fibres.

The American Chemistry Council (ACC) estimates that each new home built represents some $15,000 in chemicals and derivatives used in the structure or in production of component materials, equipment and furnishings.

($1 = €0.76)

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By: Tracy Dang
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