New home sales fell in June for the seventh time in the past eight months, according to a government report released Friday.

The Commerce Department reported Friday that sales of new single-family homes last month declined 0.6% to a seasonally adjusted annual rate of 530,000 units from May's performance of 533,000 units. The June figure was above the economists' expectations of 505,000.

Analysts noted that sales were up in two of the four regions of the country, an indication that the rock bottom of home sales is drawing to a close.

Sales largest declines were in the South, by a 2 percent drop, while in the West by 0.9 percent. These declines were offset somewhat by sales increases of 5.3 percent in the Northeast and 2.5 percent in the Midwest.

The nation is enduring a steep downturn in housing that has pushed the overall economy close to a recession. It has also triggered a severe credit crunch, forcing U.S. financial institutions to cope with billions of dollars of losses from bad mortgage loans.

The report on new home sales showed that the median price of a new home sold in June fell by 2 percent compared to a year ago.

The median sales price of new houses sold in June 2008 was $230,900, which is 1.4% higher than the revised median sales price of $227,700 in May.

Despite the monthly sales decrease, economists and investors reacted favorably because the upward revisions in previous months showing a stronger market than previously perceived.