The inventory of new homes for sale jumped dramatically in July, the U.S. Census Bureau and U.S. Department of Housing and Urban Development reported today.

The seasonally adjusted estimate of new houses for sale at the end of July was 393,000, which is the highest level for at least the past five years. This represents a supply of 4.2 months, which means that it would take about 4.2 months to exhaust the supply of houses at the current sales pace. That is the highest monthly supply level since February 2003, when the supply was estimated at 4.5 months.

The rate of new single-family home sales dropped an estimated 6.4 percent from June to July and 1.9 percent from July 2003 to July 2004, according to federal statistics. These comparisons have an error margin ranging from 9.7 percent to 10.7 percent. The seasonally adjusted annual rate of new single-family home sales reached 1.13 million in July 2004, compared with 1.21 million in June 2004 and 1.16 million in July 2003. This seasonal annual rate projects a monthly sales rate over a 12-month period.

The median sales price of new houses sold in July 2004 was $207,400 and the average sales price was $274,200. In June 2004, the median sales price of new homes was $209,900. Median home prices peaked in April at $221,400.

The seasonally adjusted rate of new houses sold and for sale dropped 23.5 percent in the Northeast, 15.9 percent in the South, and 1.7 percent in the West from June 2004 to July 2004, the federal agencies reported, while increasing 21.5 percent in the Midwest. From July 2003 to July 2004, new houses sold and for sale decreased in all regions except the Midwest, which reported a 17.1 percent year-to-year gain.

***

Send tips or a Letter to the Editor to glenn@inman.com or call (510) 658-9252, ext. 137.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect is LIVE tomorrow! Join us and thousands of your peers from wherever you are.Register Today×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription