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New-home sales rate sinks 35.3% in July

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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 d...