U.S. New Home Sales Fall Again
Results fell well short
Homebuilders in July saw a decrease in new-home sales in the U.S. for the second straight month, but prices have started to moderate and should help the market in the near future.
The U.S. Department of Commerce reported on Monday that new home sales fell 2.4 percent to a seasonally adjusted rate of 412,000 units, which is the lowest level since March, Reuters reported. New home sales also fell 7 percent in June.
July forecasts predicted 430,000 new home sales across the country, but results fell well short.
Despite the lukewarm sale numbers, Commerce Department data showed an increase last month in new home construction and in resales, which climbed to their highest levels in 10 months.
The total inventory of new homes on the market jumped 4.1 percent in July to 205,000 units, which is the highest level in nearly four years.
At the same sales pace as July, it would take six months to deplete the current housing inventory. Economists generally consider a six-month supply to be a solid balance between supply and demand.