New-Home Sales Rise Slightly

The annualized sales pace of new single-family homes totaled 515,000 units in July, a slight increase since the previous month but a 35% decline from that of a year earlier. Meanwhile, the inventory of new homes for sale fell to a 10.1-month supply, compared with a 10.7-month supply in June. The median sales price was $230,700, compared with $230,100 in June and $246,200 a year earlier. "Single-family new-home sales in July were very close to expectations, but the 515,000 reading turned out to be a rise from the June level, which was revised downward from 530,000 to 503,000," said RBS Greenwich analyst Stephen Stanley. "In any case, new-home sales fell sharply through around March of this year and have been steadier since then. We look for sales to drag along that bottom for the most part in the second half of the year."