Sales of new single-family homes posted a near-double-digit decline in July, falling 9.4% from June to an annual sales pace of 571,000 and missing by a wide margin the expectations of economists polled by Bloomberg of a pace of between 590,000 and 622,000, the Commerce Department reported Wednesday.
Compared to July, 2016, sales were down 8.9%.
The median sales price of new houses sold in July was $313,700, up marginally from June’s $311,600. The median a year earlier was $295,000. The average sales price was also up marginally to $371,200 from June’s $370,000 but well ahead of July 2016’s $355,000.
The seasonally-adjusted estimate of new houses for sale at the end of July was 276,000, a supply of 5.8 months at the current sales rate, up from 4.7 months in June.
Declines were evident in all regions except the Midwest. The Northeast was down 23.8% to a pace of 32,000, 13.5% behind last July’s pace. The Midwest gained 6.2% to sa pace of 69,000 but was down 12.7% year-over-year. The South fell 4.1% to 326,000, 11.7% off last year’s pace. The West fell 21.3% to 144,000, up 1.4% from a year earlier.
“Some pull back in new home sales this month is not surprising after strong May and June readings,” said NAHB Chairman Granger MacDonald through NAHB Now, the news blog of the National Association of Home Builders. “Builders must continue to manage construction costs to ensure houses remain affordable.”
“The year-to-date growth shows that new home sales continue to trend upward at a steady pace over the longer term,” said NAHB Senior Economist Michael Neal, also via NAHB Now. “Steady economic growth and a healthier labor market suggest that the underlying economic fundamentals remain in place for a continued recovery.”
