New home sales rebound despite record prices
New-home sales increased 1% to an annual rate of 708,000, the U.S. Census Bureau said this week. The figure equates to how many homes would be sold over a yearlong period of time if the same number were bought in each month based on the rate of sales in July. Unlike the existing-home sales report, the new-home sales report captures sales when the contract is signed rather than when the sale is closed.
Compared to a year ago, sales were down more than 27%. Sales expectations, as economists had forecast an annual sales rate of 700,000 for July. Additionally, the new home sales figure for June was revised upward to 701,000 from the initially reported 676,000.
The supply of new homes for sale at the end of July increased 5.5% from the month prior and 26% from a year ago. July’s available inventory equated to a 6.2-month supply, representing the highest level in over a year.