Home Sales Up in July; Market Glut Begins to Ease

Inventory still high as monthly declines ease
By Clay Dillow,  Newser Staff
Posted Aug 26, 2008 10:53 AM CDT
Foreclosures in the wake of the subprime debacle have flooded the market with homes, driving down prices.   (AP Photo/David Zalubowski, file)
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(Newser) – New home sales rebounded a bit in July, according to Commerce Department data released today, and the glut of properties on the market began to ease, Bloomberg reports. The 2.4% uptick in sales fell short of the pace economists were looking for—hitting a 515,000 annual pace rather than 525,000—but the inventory of unsold homes fell 5.2%, the biggest drop in 45 years, to a 416,000 pace.

The supply of homes at the current sales rate fell to 10.1 months' worth from 10.7 months in June; a 5- to 6-months' supply is considered a balanced market, Bloomberg says. The median price of a new home was down 6.3% from June, to $230,700, and from $246,200 a year earlier.