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New Home Sales, which measures signed contracts on new homes, were down 6.6% in June, which was a significant miss and beneath expectations of a 3.4% gain. Looking at inventory levels - There were only 353,000 new homes for sale, which is up 7% from May. The Median home price was reported at $362,000, which is down 5% from the previous report and up 6% year over year. Taking a deeper look at the sales and inventory – 77% of the sales in June were for homes not started or still under construction. 90% of the for sale inventory at the end of June were not started or still under construction. There is clearly a huge backlog of construction for builders, which is why the nations largest like D.R. Horton are pulling back on sales to let supply catch up to demand. This is the reason for the decline in sales, not a lack of demand.