New-Home Sales Unchanged in July

Sales of newly built single-family homes in July remained consistent with figures posted during the previous month, according to the U.S. Department of Commerce. July sales were at a seasonally adjusted annual rate of 298,000, just 0.7 percent below the revised June rate of 300,000. On a positive note, though, sales are up 6.8 percent from the July 2010 estimate of 279,000.

The median sales price of new houses sold in July was $222,000; the average sales price was $272,300. The seasonally adjusted estimate of new houses for sale at the end of July was 165,000, representing a supply of 6.6 months at the current sales rate.

"The fact that new-home sales fell by less than one percent in July is an indication of how little conditions have changed in the housing market," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While new-home inventories are exceptionally thin, home builders are still competing with large numbers of foreclosed and distressed homes on the market and a climate of uncertainty in which consumers are reluctant to go forward with a major purchase for fear of what economic news tomorrow might bring."

"The sales pace of newly built, single-family homes in July was in line with what it has been over the last year, and this is in keeping with our forecast," said NAHB Chief Economist David Crowe. "While we expect to see some marginal gains in sales activity through the rest of 2011, we do not foresee any major advances until economic growth helps boost home buyers' confidence."

In a separate release, the NAHB noted that housing affordability hovered near its highest level in more than 20 years during the second quarter.