More bad news for the U.S. real estate market.
New home sales in the U.S. declined in July to the lowest level on record, CNN Money reported August 25, 2010.
The expiration of the home buyer tax credit surely had an impact.New home sales dropped 12.4 percent to a seasonally adjusted annual rate of 276,000 last month, down from a downwardly revised 315,000 in June, the U.S. Commerce Department reported. Sales year-over-year plunged 32.4 percent. The Commerce Department started tracking new home sales in 1963.
The government report showed that the median price of new homes sold in July was $204,000, down almost 6 percent from June and a 4.8 percent drop from July 2009.
An estimated 210,000 new homes were for sale at the end of July, the lowest since September 1968. At the current sales pace, the government expects it will take 9.1 months to sell through that inventory, up from the 8 months of inventory that was on the market in June . Six months of new home inventory is considered normal market conditions.
New home sales declined the most in the West, where sales decreased by more than 25 percent, and the Northeast saw sales decline by 13.9 percent. Sales in the South and Midwest declined by a little more than 8 percent.