US new home sales fall to lowest level since 2016

US new home sales continued to decline for the sixth month amid declining borrowing costs and declining demand According to data from the US Department of Commerce, new home sales fell to their lowest level since January 2016 in July due to declining demand. Sales fell 12.6 percent during this period, falling to 511,000 on an annualized basis. The median estimate of economists participating in a Bloomberg survey was 575,000. Sales thus continued to decline for the sixth month. The June data was also revised from 590,000 to 585,000. The average sales price increased by 8.2 percent to $439,400. This was the lowest increase since the end of 2020. The decline in home sales reflects the negative impact of high prices and high borrowing costs on the real estate sector. Second-hand home sales, announced last week, also fell for the sixth month, falling to their lowest level in 2 years.