US July new home sales disappoint with 2.4% rise

0 Comments | AFP, August, 2008

WASHINGTON (AFP) — US new home sales rose 2.4 percent in July from June to a pace that fell far short of market expectations, in a further sign of housing market distress, government data showed Tuesday.

The Commerce Department reported that sales of new one-family homes stood at a seasonally adjusted annual rate of 515,000 units, while the consensus analyst forecast was 525,000.

On a 12-month basis, the pace of new home sales was 35.3 percent below the July 2007 level.

The department sharply revised lower its June rate to 503,000, from an initial estimate of 530,000.

The June sales pace was the slowest since September 1991, during the last real estate downturn.

© 2008 AFP