Sales of newly built single-family homes edged 0.6% lower in July, falling to a seasonally adjusted annual rate of 652,000, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The pace of new home sales is down 8.2% from a year earlier.
The National Association of Home Builders attributed this decrease to high mortgage rates, rising construction costs and economic uncertainty that deterred many potential home buyers during this summer season.
“Elevated mortgage rates and ongoing economic uncertainty are weighing heavily on buyer demand,” NAHB Chairman Buddy Hughes said in a statement. “Meanwhile, an elevated inventory of unsold homes, fueled by lagging sales, is prompting concerns over potential cutbacks in new construction.”
The median new home sale price was $403,800, down 5.9% from a year ago. The decline can be primarily attributed to home builders' rising use of sales incentives, NAHB says.
Regionally, on a year-to-date basis, new home sales are down in all four regions, falling 23.1% in the Northeast, 4.2% in the Midwest, 1.4% in the South and 6.2% in the West.
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