New Home Sales Up 2.8% in July

Washington, DC, August 24, 2007—New home sales rose 2.8% in July to a seasonally adjusted annual rate of 870,000, as the inventory of homes for sale dropped for a fourth straight month, according to a Commerce Department report.

Economists had forecast  an increase to the level of 820,000 at an annual rate.

On a year-over-year basis, new home sales were down 10.2% in July.

Inventories of new homes fell about 1% to 533,000, the fourth consecutive decline, representing a 7.5 months' supply in July, down from 7.7 months in June.

Inventories of new homes are down 7% since last July.

The median sales price in July was $239,500, up 0.6% compared with a year earlier.

Sales rose 22.4% in the West and 0.6% in the South. Sales were off 24.3% in the Northeast and 0.9% in the Midwest.