The market experienced a 9.4 percent decrease in sales in July
According to the Commerce Department, new single-family home sales declined 9.4 percent on a seasonally adjusted annual rate of 571,000 in July, sinking to its lowest level since December.
CNBC reports that the drop was unexpected, as economists predicted a 0.3 percent gain for the month. June’s new home sales was recently revised upwards to 630,000 units.
Though economists expect a rebound in the third quarter, fewer sales suggests that the housing market may be cooling.
The housing market is being hampered by a shortage of properties, which is driving up home prices. The new housing market has not capitalized on the acute shortage because of supply constraints facing builders, including labor, land and finance.