Sales of new homes tumbled 7.6 per cent in August
WASHINGTON — Sales of new homes retreated in August, one month after surging to the highest level in nearly nine years. Activity fell in all regions of the country except the West.
New home sales dropped 7.6 per cent last month to a seasonally adjusted annual rate of 609,000 units, the Commerce Department reported Monday. That followed a surge in sales in July when they jumped 13.8 per cent to a rate of 659,000, the fastest pace since October 2007.
Sales had been expected to slow following the July surge.
Even with the August decline, sales of new homes are up a solid 20.1 per cent from a year earlier. Jennifer Lee, senior economist at BMO Capital Markets, pointed to a number of positive factors helping the housing market.