Just two days ago you read here how June existing home sales continued their 28 month roll. And today we find that new home sales, as reported by the Commerce Department, fell significantly in June dropping 8.1 percent to a seasonally adjusted count of 406,000 units. This surprised economists as june new home sales downthey were expecting something closer to 479,000.

On a year over year basis, this drop was 11.5 percent fewer than June of 2013. So what’s the difference between an existing and new home sales?

Interesting question. From a purely economic standpoint, you might be able to point out that rates moved upward slightly but they’ve been in their current range for quite some time. There was no major rate drop or rate increase last month of any real regard. As the economy gradually moved forward over the past two years, home builders struggled to catch up with the new-found demand for housing, this helping to keep median home prices on a steady rise. Yet once the homes were built, the June number threw more than a few prognosticators off center.

Perhaps geopolitical events kept buyers on the sidelines, waiting on rates to move up or down or perhaps to see if the stock market begins to take a tumble. Housing bubble? Then maybe potential buyers kept to themselves thinking that another price bubble is about to burst. Yet whatever the reason, it’s hard to figure out why existing home sales for June ran at the fastest clip since October of last year along with its 28th straight month of price increases while a brand new home during that same period fell at a rate not seen since July of last year. Maybe there’s a reason that we can’t quite discover but it may simply be an anomaly.  Let’s get another round of new home sales next August and see if there’s a trend.