New Home Sales Surge Nearly 10% in July
Sales of new homes surged 9.6 percent in July compared with June, stoking hopes that the new-home market has found a bottom, the Commerce Department reported moments ago.
Sales rose to an annualized rate of 433,000 homes, up from 395,000 in June.
The number reflects contracts signed for new homes, rather than closings, as consumers took advantage of the $8,000 first-time home buyer credit, which expires at the end of November.
The median price for a new home is now $210,000, down from $237,300 one year ago.
The inventory of unsold new homes dropped from 8.5 months to 7.8 months in July. A healthy housing market carries a six-month inventory.
-- Frank Ahrens
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August 26, 2009; 10:11 AM ET
Categories: The Ticker | Tags: Commerce Department, new home sales
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