Sales of new homes fell 12% in July compared to June volumes, according to estimates released today by the U.S. Census Bureau and the Department of Housing and Urban Development.
A similar decline occurred for sales of existing homes. According to the National Association of Realtors (NAR), the number of existing homes sold last month dropped 27% from the prior month and 25% from the level a year ago.
NAR economist Lawrence Yun explained, “consumers rationally jumped into the market before the deadline for the home buyer tax credit expired (in June 2010).” A “pause period” is likely to last through September before the number of home sales picks up again, Yun continued.
Additional information is available at the Census site and the Realtor site.