Housing Stocks Tank on Disappointing New-Home Sales

That's a bummer.

JPMorgan reported Wednesday morning that new single-family home sales fell in June. In total, the sales fell 5.3%, which was disappointing when compared to strong May numbers. 

Home companies, such as Beazer Homes USA Inc. (BZH) - Get Report plummeted on the news. In afternoon trading, Beazer was down nearly 10%.

KB Home (KBH) - Get Report also fell on the news. The stock dropped 5%. 

Toll Brothers Inc. (TOL) - Get Report , a home construction company, was down 5%, as was PulteGroup Inc. (PHM) - Get Report .

"Price data in the new home sales report also have looked weak lately, with the median sale price down 4.2% [over a year ago] in June," said JPMorgan in its note.

JPMorgan expects "real residential investment will be basically flat in Q2...but our tracking of real GDP growth for the quarter remains at 4.4% [seasonally adjusted annual rate] after rounding," it continued.

"June's sale pace disappointed expectations," the note stated.