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U.S.: New Home Sales Down 2.4% in July
“We are somewhat surprised by this dip, considering builder confidence and new-home starts are on the rise,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. “However, builders are increasing their level of inventory in anticipation that sales will gradually improve during the rest of the year.”
“Though new-home sales is a volatile metric that can fluctuate significantly from month to month, the economic fundamentals are in place for an ongoing housing recovery,” said NAHB Chief Economist David Crowe. “Consumer confidence continues to improve, mortgage rates are at yearly lows, and the labor market is healing. These factors should help spur pent-up demand.”
Regionally, new-home sales fell 30.8 percent in the Northeast, 8.8 percent in the Midwest, and 15.2 percent in the West. Sales were up 8.1 percent in the South, the country’s largest region.
The median sales price of new houses sold in July 2014 was $269,800; the average sales price was $339,100.
The inventory of new homes for sale increased to 205,000 units in July. This is a 6.0-month supply at the current sales pace.