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New-home sales rate falls 80% from peak

Federal report piles on to record-low resale stat

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New-home sales dropped to an all-time low in July, federal agencies announced today, following on the heels of a National Association of Realtors' report of a record low sales rate for resale homes. The seasonally adjusted annual sales rate for new, single-family homes tumbled an estimated 32.4 percent year-over-year in July, to 276,000, and fell an estimated 12.4 percent compared to June 2010, the U.S. Census Bureau and U.S. Department of Housing and Urban Development reported today. This rate is a projection of a monthly sales total over a 12-month period, adjusted to account for seasonal variations in sales activity. The agencies note that changes in the seasonally adjusted statistics have varying reliability based on the limited data gathered, are subject to revisions, and can show irregular movement. It can take four months to establish a trend for new homes sold. The July rate represents an 80.1 percent falloff from the peak rate five years ago. In July 2005 the new-h...