New Home Sales Down 1.7 Percent

Sales of new homes fell to a 9-month low in July. The Commerce Department reported a seasonally adjusted annual rate of 627,000 units last month, the lowest number since October 2017.  New home sales were up 12.8 from a year ago.

The sector faces shortages of land and labor, as well as rising building material costs. These factors have constrained the supply of houses for sale and kept home prices elevated. The median new home price rose 6 percent from the prior month to $328,700.