August saw new homes sales inch up 0.7% over July the Commerce Department said. The seasonally-adjusted estimate of new home inventory at the end of August was 262,000, which represents a 7.3-month supply at the current sales rate.
“Price cuts and dramatic cutbacks in home construction are clearing out inventory in a big way,” said Mike Larson, analyst at Weiss Research, Inc., in a research note. “We now have the fewest new homes for sale in this country since November 1992.” As builders have this year catered to first-time buyers, the median sales price of new homes has fallen to $195,200, from a revised $215,600 in July. The average price sank to $256,800 in August from $273,100.
