SG: New home sales slumped to a five-month low in July (B. Jones)

Eco Analysis - New home sales slumped to a five-month low in July (B. Jones)

■ Consistent with our expectation, new home sales remained on a downtrend

The Census Bureau reported that the number of new homes going to contract slipped by 0.7% to a seasonally adjusted annual rate of 298,000 in July, boosting the cumulative slide since April to 5.7%. Downward adjustments to the previously reported figures for April through June pared the Q2 average by 7,000 to 308,000.

■ Regional activity was decidedly mixed in July

New home purchases tumbled by 13,000 to 163,000 in the South the lowest selling pace since January. In the West, the number of newly constructed units going to contract fell by 4,000 to a five-month low of 64,000. Sales in the Northeast, however, soared during the reference period, doubling to 28,000. The number of home purchased in the Midwest edged 1,000 higher to 43,000, essentially matching the Q2 average.

■ Homes on the market dipped to a record low

The number of unsold dwellings on the market edged 1,000 lower to 165,000 during the reference period the lowest level since the series began in 1963. A nearly identical decline in sales during July left the months' supply of homes on the market unchanged at 6.6 last month and four ticks above the long-term average of 6.2.

■ Prices mixed on a sequential basis, but well above year-ago levels.

The median new home price nationwide fell by 6.3% to $222,000 in July, reversing all but a fraction of June's rise, while the average value edged 0.1% higher to $272,300. Over the latest 12 months, the median and average selling prices nationwide rose by 4.7% and 8.0%, respectively.