New-home sales rate sinks 35.3% in July

The sales rate for new single-family homes fell about 35.3 percent year-over-year in July, the U.S. Census Bureau and Department of Housing and Urban Development reported today, with the median new-home price dropping 6.2 percent and the average price down 4.1 percent. The seasonally adjusted annual rate of new single-family home sales reached 515,000 in July, up 2.4 percent from 503,000 in June but down significantly from 796,000 in July 2007. This rate is a projection of a monthly rate over a 12-month period, adjusted to account for seasonal fluctuations in sales activity.

New homes took a median 8.5 months to sell in July, compared with 3.6 months in July 2006 -- and the median months for sale statistic has risen for 11 consecutive months. There was a projected 10.1-month supply of new homes for sale at the July sales rate -- a supply above six months can indicate a buyer's market.

On Monday, the National Association of Realtors reported that the sales rate for of U.S. resale homes dropped 13.2 percent in July compared to the same month last year, and the national median price dropped 7.1 percent.

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