June's new home sales totals were revised upward to make them the highest since 2007, which makes the 12.8% decrease suffered in July a little less alarming. And in good news to potential buyers, the national median sales price came in at $312,800, a 4.5% year-over-year decline.
Sales of new homes on a year-to-date basis are up 4.1% and inventories saw a modest gain to create a 6.4 month's supply. The Wells Fargo Economics Group reports that lower mortgage rates and discounts by builders are producing "an overall improving sales trend compared to last year's sluggish pace." And, due to higher demand for more affordable homes, builders have "shifted focus towards more entry-level construction, which has led to the median sales price falling."
But regionally, the Northeast saw the median price of new homes climb 50.0%, which was balanced by the reductions in the South, West and Midwest of 16.1%, 14.2% and 11.1% respectively.