Sales of new single-family homes in the United States declined 10.5% in July to a seasonally adjusted annualized rate of 607,000 units, the Commerce Department’s Census Bureau reported on Tuesday. The decline follows a downward revision of June’s figure and marks the weakest sales pace since January.
Economists had projected a seasonally adjusted rate of 620,000 units, according to a survey of analysts. On an annual basis, new home sales fell 6.3% compared with July 2023.
The median price of a new home decreased 0.9% from a year earlier to $393,800, the lowest level in four years. The drop in sales coincides with elevated mortgage rates, which have weighed on affordability and buyer sentiment.
Separate data from the Conference Board released the same day showed that just 5.2% of American consumers plan to purchase a home within the next six months, down from 6.5% in June. This represents the largest monthly decline in buying intentions in more than five years. The Conference Board also reported that overall consumer confidence fell to a seven-month low, citing concerns over the job market and inflation pressures.
The dual reports underscore the cooling momentum in the U.S. housing market amid persistent financial headwinds.
