Sales of new homes slipped 1.7 percent in July to a seasonally adjusted annual rate of 627,000, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. It is the lowest sales pace for new homes since October 2017, said NAHB Senior Economist Danushka Nanayakkara-Skillington.
It’s the second month of declines, having dropped 5.3 percent in June to a rate of 631,000. The latest rate remains 7.2 percent above July 2017 new home sales rates, however.
“A lack of overall housing inventory is pushing up home prices, which is hurting affordability and causing prospective buyers to delay making a home purchase,” said National Association of Home Builders Chairman Randy Noel in a statement.
Regionally in July, new home sales fell 52.3 percent in the Northeast and 3.3 percent in the South, while increasing 10.9 percent in the West and 9.9 percent in the Midwest.
