New numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show new home sales up 1 percent in July. The modest gain follows an unexpected drop in June, when sales fell 6.6 percent from the month before. But while rebounding sales are an encouraging sign for the housing market, they come at a time when affordability challenges are making it more difficult for buyers. For example, the median sales price of new homes sold in July was $390,500. The average sales price was $446,000. That’s about $60,000 higher than they were last year at the same time. However, while prices are still headed upward, so is inventory. At the end of the month, there were 367,000 new homes for sale. That represents a supply of 6.2-months at the current sales rate. With continued improvement, increasing for-sale inventory should help slow future price spikes, bringing relief to home buyers in the months ahead. (source)
