US new home sales tumble to seven-month low in July

Source:Xinhua Published: 2017/8/24 7:59:04

Sales of US newly-constructed homes tumbled to a seven-month low in July, raising concerns of a slowdown in the housing market recovery.

Sales of new single-family houses were at a seasonally adjusted annual rate of 571,000 units last month, 9.4 percent below the revised level in June, the Commerce Department said Wednesday.

That was below economists' expectation of around 608,000 units, marking the lowest level since December 2016. Compared with a year earlier, new home sales fell 8.9 percent in July.

The median sales price of new homes sold last month was 313,700 US dollars, up 6.3 percent from a year ago. At the current pace of sales, it would take 5.8 months to exhaust all supply.

New home sales, which account for about 10 percent of overall housing sales, tend to be volatile from month to month. But it's considered a timelier barometer of the residential market than sales of existing homes, which will be released Thursday by the National Association of Realtors (NAR).

Existing home sales fell 1.8 percent in June from the previous month to a seasonally adjusted annual rate of 5.52 million, according to NAR.

A separate report from the Mortgage Bankers Association on Wednesday also showed that applications for loans to buy a house fell again last week.

Posted in: INDUSTRIES,ECONOMY

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