New home sales fell 2.4% in July to a seasonally adjusted annual rate of 412,000 units. That’s the second straight month of decline – although June numbers were revised upward to 422,000.
Despite the drop, industry professionals remain optimistic about continued recovery.
“We are somewhat surprised by this dip, considering builder confidence and new-home starts are on the rise,” said Kevin Kelly, NAHB chairman. “However, builders are increasing their level of inventory in anticipation that sales will gradually improve during the rest of the year.”
“Though new-home sales is a volatile metric that can fluctuate significantly from month to month, the economic fundamentals are in place for an ongoing housing recovery,” said NAHB chief economist David Crowe. “Consumer confidence continues to improve, mortgage rates are at yearly lows, and the labor market is healing. These factors should help spur pent-up demand.”
Sales of new single-family homes fell sharply in July, according to new data from the National Association of Home Builders.