New home sales at lowest level nationwide in five years: report

New U.S. home sales fell to the lowest level in five months,
according to July Department of Commerce data released today. Newly
constructed, single-family homes sold at a seasonally adjusted annual
rate of 298,000 last month, a 0.7 drop from the 300,000 rate in June,
which has been revised downwards. While sales got a boost from tax
credits for buyers last year, those credits expired last summer, and
new homes have faced competition from foreclosure properties, while
buyers have struggled with tight credit and a poor economy. Sales did
rise 6.8 percent year-over-year from 279,000 in July 2010.
The median price for a new home sold in July was $222,000, down about
5.5 percent from June but up 8.8 percent from 12 months earlier.
The inventory of new homes for sale was 165,000 during the month of
July. It would take 6.6 months to sell off those homes at the current
sales pace. — Miranda Neubauer