U.S. new home sales plunged 12.6% to a seasonally-adjusted rate of 511,000 in July, from a revised 585,000 in the prior month, the Commerce Department reported. The pace of sales in July is the lowest level since January 2016.
The numbers: U.S. new home sales plunged 12.6% to a seasonally-adjusted rate of 511,000 in July, from a revised 585,000 in the prior month, the Commerce Department reported Tuesday.Sales have fallen since hitting a peak of 1.04 million in August 2020.
The supply of new homes for sale rose by 18.5% between June and July, equating to a 10.9-month supply. The supply of new homes is the highest since March 2009, and is one of the highest levels on record. Home sellers are adjusting prices based on demand cooling, and buyers are seeing more opportunities in terms of inventory, and having to face fewer bidding wars.
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