Sales are down, but inventory is up in latest new-home sales data

Sales of new single-family homes dropped 1.7% in July, according to latest data from HUD and Census Bureau

Sales of new single-family homes dipped slightly in July to a seasonally adjusted annual rate of 627,000, a 1.7-percent decline, month-over-month, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. Year-over-year, sales of new single-family homes are up 12.8 percent.

The median sales price of new homes sold in July was $328,700, with the average sales price of all homes clocking in at $394,300.

At the end of July, the seasonally adjusted estimate of new homes for sale was 309,000, which represents 5.9 months of supply at the current sales rate, an increase over the 5.7 months of supply at the end of June.

“Today’s new-home sales report won’t entirely put to bed concerns about a housing slow down, but it does give reason for optimism,” said Danielle Hale, chief economist at realtor.com “While monthly home sales slipped, yearly growth pushed the 3-month average to 8.1 percent, back above what is forecasted for 2018 (7 percent).”

“This year’s building and growth in new-home sales has helped alleviate shrinking inventories for both new and existing homes which have been a major obstacle to home sales,” added Hale. “Now home shoppers are starting to see more choices, but not necessarily in the price range they’re looking.”

Developing…