New Home Sales Fall in July From High

New home sales dipped 12.8% during July, but prior month sales were revised substantially higher to a 728,000-unit pace, the strongest since 2007. The median sales price fell 4.5% year-over-year to $312,800

Down in July, but Pace is Improving

• New home sales fell 12.8% to a 635,000-unit pace during July. That noted, prior month sales were revised up to a 728,000-unit pace, making June the new high water mark for the cycle.
• Sliding mortgage rates and builder discounts have led to an overall improving sales trend compared to last year’s sluggish pace. Sales are up 4.1% on a year-to-date basis. Inventories rose slightly to 337,000, bringing months’ supply to 6.4 for July.

Prices Remain Below Last Year’s Level

• Amid strengthening demand for more affordable homes, builders have discounted prices and shifted focus towards more entry-level construction, which has led to the median sales price falling 4.5% year-over-year in July to $312,800.
• The South and West each gave back some of the massive gains posted in June with respective 16.1% and 14.2% declines. The Midwest also dropped 11.1%, while the Northeast jumped 50.0%

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