New Home Sales Bounce Back in July

New Home Sales Bounce Back in July

The pace at which newly constructed homes are selling remained unpredictable in July, beating forecasts by rising 2.8 percent over June's rate, according to a report issued today by the U.S. Census Bureau and the Department of Housing and Urban Development.

Builders have reduced their asking prices and offered incentives to create more consumer interest in the excess housing inventory.  On the lending side, despite the noise emanating from the subprime issues, most people have good credit and can document their income, and still have many financing options available to them.

The inventory of new unsold homes has dropped from 7.5 months to 6 months.