New Home Sales Drop for 2nd Month, But Housing Strength is Seen

Sales of new single-family homes fell for a second straight month in July, but a surge in the stock of properties on the market and a moderation in price increases should help to stimulate demand in the months ahead.The Commerce Department said on Monday that sales slipped 2.4 percent to a seasonally adjusted annual rate of 412,000 units, the lowest level since March. June's sales were revised to show a 7.0 percent decline instead of the previously reported 8.1 percent slump. Economists polled by Reuters had forecast new home sales at a 430,000-unit pace last month. The weak new home sales pace is at odds with other data that have suggested the housing market recovery is back on track. New house sales data, however, is volatile month-to-month because of a small sample. Data last week showed a jump in new home construction in July and sales of existing homes also rose to a 10-month high in July.



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- Reuters