Friday, August 23, 2013

New Home Sales Fell 13% in July

The pace of new home sales plummeted in July, falling to an annual rate of 394,000 units. The pace is 13.7% below the previous month’s 455,00 units and the lowest level since October of last year. July’s pace is just 6.8% higher than a year ago. By comparison, June’s report was 38% higher than the year-ago pace.

July’s slowdown was broad based, with three of the four regions reporting sales slowing by more than 10%. The Northeast fared the best, with sales falling by 5.7%. The West, which was hit the hardest, saw sales fall by 16.1%.

The deceleration of sales and an increase in listings led the supply of homes for sale at the current sales pace to rise from 4.3 months to 5.2 months. Listings increased by 4.3% over the months reaching an annual level of 171,000 untis.

The median price of a new home rose to $253,900, up 8.3 % from year-ago levels. Although this has improved, the median price is 8% below its level just three months prior.

Read the Census report.

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