Sale of new homes drops to all-time low in July

New-home sales dropped to a new low in July.
New-home sales dropped to a new low in July.
July posted sales of new single-family homes at a seasonally adjusted annual rate of 276,000, according to a report from the government.

The figure is 12.4 percent lower than what was seen in June and was 32.4 percent less than July of last year. Perhaps of greater concern to users of construction equipment, however, is the fact that it is the lowest rate ever seen on record, according to the National Association of Home Builders.

Bob Jones, president of the NAHB, said that consumers are feeling hesitant given the current economic and employment conditions. David Crowe, chief economist for the group, agreed.

"The slow pace of economic recovery and worries about job security are weighing heavily on the minds of potential homebuyers right now," Crowe said. "As a result, the housing market is clearly in a holding pattern."

A recent report from the National Association of Realtors showed that existing home sales also dropped in July. Like the NAHB, that firm tied the decline to consumers' doubts about employment and the economy as a whole.