Sales of new homes down slightly in July
Newly constructed, single-family homes sold at a seasonally adjusted annual rate of 298,000 last month, according to the Commerce Department. That represented a 0.7% drop from June but is 6.8% above the same period a year earlier.
The market for new homes has been weak ever since the collapse of the housing market five years ago. Sales got a boost from tax credits for buyers last year but fell again once those credits expired last summer. New homes have faced stiff competition from foreclosure properties and buyers have been scarce because of tight credit and a poor economy.
The seasonally adjusted estimate of new houses for sale at the end of July was 165,000, representing a supply of just over six months and two weeks at the current sales rate.
-- Alejandro Lazo
Photo: Homes under construction in Southern California. Credit: Getty Images