New Home Sales Plunge 13.4 Percent

Well below analysts estimates

New home sales plunged 13.4% in July, as builders sold new houses and condos at a clip of 394,000 a year.

Sales fell from a seasonally adjusted annual rate of 497,000 in June, the Census Bureau reported Friday, and were well below analysts' estimates of 487,000. Sales were 6.8% higher than last July. The median price was $257,200, up from $249,700 last month, and there were 171,000 homes for sale at the end of July, representing a five-month supply at the current sales pace, Census said.