New single-family home sales in July were at a seasonally adjusted annual rate of 412,000, a 2.4 percent decrease from June's 422,000 rate, according to the U.S. Census Bureau.
"We are somewhat surprised by this dip, considering builder confidence and new-home starts are on the rise," said Kevin Kelly, chairman of the National Association of Home Builders (NAHB), in a statement. "However, builders are increasing their level of inventory in anticipation that sales will gradually improve during the rest of the year."
Despite a month-to-month drop, July's rate was 12.3 percent higher than the amount of single-family home sales a year ago (367,000).
The median sales price of a new home sold in July 2014 was $269,000, and the average was $339,100.
The seasonally adjusted estimate for new houses for sale at the end of July was 205,000, representing a supply of 6.0 months at the current sales rate.
"Though new-home sales is a volatile metric that can fluctuate significantly from month to month, the economic fundamentals are in place for an ongoing housing recovery," said NAHB Chief Economist David Crowe. "Consumer confidence continues to improve, mortgage rates are at yearly lows, and the labor market is healing. These factors should help spur pent-up demand."
