New Home Sales Sank in July
Aug 23, 2017
The number of new homes sold in July slowed unexpectedly and were much weaker than estimated. The month-over-month decline was the sharpest since August 2016 while the year-over-year pullback was the largest since the summer of 2014. To be fair, both comparisons were against two of the strongest readings of the current recovery. Nonetheless, the annualized pace of sales in July was the weakest since December and declined in three of the four geographic regions. The Midwest experienced a slight improvement but sales in the South were a touch softer. The biggest declines came in the Northeast and West where sales fell more than 20%. Easing the current month’s disappointment was a positive net revision of 46k for the three months prior.