New Home Sales in July Less Than Expected

Washington, DC, Aug. 23, 2011 -- New home sales in the U.S. fell more than expected in July to the lowest level in five months, according to the Commerce Department.

Purchases fell 0.7% to a 298,000 annual pace after a 300,000 rate in June that was slower than previously estimated, the government said.

Economists expected a rate of 310,000 in July.

The median sales price of a new home rose 4.7% over July 2010 to $222,000.

There were a record-low 165,000 new houses on the market at the end of July, leaving the supply of homes at the current sales rate at 6.6 months’ worth, the same as in June.