Overview

• July sales ran at a 652,000 annualized pace, down 0.6% from June and 8.2% from a year earlier, according to Census/HUD.
• Homes for sale totaled 499,000, equal to 9.2 months of supply, with roughly 121,000 completed units contributing to a buildup that typically weighs on permits.
• The median new-home price fell to $403,800, down 5.9% year over year, with the median running nearly $20,000 below existing-home prices.
• The report topped economist forecasts after an upward revision to June; the West posted an 11.7% monthly gain while the South and Midwest declined.
• Builders report heavy use of incentives, with about 66% offering discounts or rate buydowns such as DR Horton’s 3.99% offers, as high borrowing costs keep many buyers sidelined and raise cutback risks for construction.