Sales of new homes rose 1% in July to annual rate of 708,000

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — Sales of new homes posted a modest 1% increase in July after three months of declines. The July sales increase left sales at a seasonally adjusted annual rate of 708,000, the Commerce Department reported Tuesday. Sales had fallen in April, May and June. The median price of a new home sold in July was $390,500, up 18.4% from a year ago. Home sales started the year at a sizzling pace as would-be buyers were confronted with a shortage of homes on the market and surging prices. Those factors have slowed the sales pace in recent months.