WASHINGTON –
New-home sales climbed more than anticipated in July,
staging their fourth straight month of strong gains
to add to evidence that the housing market is emerging
from its long slump.
Separately, demand for long-lasting goods rebounded
sharply in July, staging their biggest gain in two years
on the back of big orders for planes and capital goods.
Sales of single-family homes increased by 9.6% to a
seasonally adjusted annual rate of 433,000 compared
to the prior month, the Commerce Department said Wednesday.
That was the highest number sold since September 2008
and well above projections for a 1.6% gain to 390,000
by economists surveyed by Dow Jones Newswires.
The increase was the fifth in seven months, as buyers
are returning to the market in search of bargains.
The market for new homes appears to have bottomed in
January, when sales hit 329,000. Home construction unexpectedly
fell 1% in July, however, according to data released
earlier in the month.
June new-home sales were revised up to an annual rate
of 395,000, a 9.1% increase, Wednesday's data showed.
Originally, the government had reported an 11% jump
in June sales to 384,000, though May sales were also
revised up to 362,000 from 346,000.
Year over year, July new-home sales were still down
13.4%, however.
The market for new homes is expected to continue to
lag sales of used homes, where foreclosures have dragged
down prices.
The median price for a new home was $210,100 in July,
down 11.5% from $237,300 the same month a year ago.
On a monthly basis, the price edged down 0.1% from $210,400
in June.
Oversupply has been is one factor keeping prices down,
though there was significant improvement in that area,
as well. The ratio of houses for sale to houses sold
in July was 7.5, the lowest level since April 2007 and
down from 8.5 the month before. At the end of July,
there were an estimated 271,000 homes for sale, the
smallest number since March 1993. That compares with
280,000 in June.
Regionally last month, new-home sales jumped 32.4%
in the Northeast and 16.2% in the South, with sales
up 1% in the West. Sales were down 7.6% in the Midwest.
An estimated 39,000 homes were actually sold in July,
up from 36,000 in June, based on figures not seasonally
adjusted.
Source: The Wall Street Journal,
August 26, 2009
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