New Home Sales Fell Unexpectedly in July

Washington, DC, Aug. 25, 2010--Sales of new homes in the U.S. unexpectedly fell in July to the lowest level on record, according to the Commerce Department.

Purchases fell 12% from June to an annual pace of 276,000, the weakest since data began in 1963. The median price of $204,000 was the lowest since late 2003.

Economists forecast new home sales would be unchanged at a 330,000 annual pace.

The median price decreased 4.8% from July 2009.

Purchases fell in all four regions, led by a 25% drop in the West.

The supply of homes at the current sales rate climbed to 9.1 months’ worth from eight months in June. There were 210,000 new houses on the market at the end of July, the same as the prior month.

Foreclosures and short-sales are boosting the so-called shadow inventory, and competing with builders trying to sell properties as well.