The US home sales dropped 2.4% from the previous month in July to 412,000 annual rate, a report from the US Commerce Department showed.
The report also revised up the June sales rate to 422,000 from 406,000.
Analysts expected a 5.8% increase to 430,000. Since the beginning of 2014, the US housing market has been recovering in a very spasmodic manner. Risks associated with mortgages and slow growth of households’ income affect the country’s real estate market. Moreover, there is lack of land for construction as well as construction specialists.
The median price of a new home last month was up 2.9% over the past 12 months.
At July's sales pace it would take 6.0 months to clear the supply of houses on the market, the highest since October 2011. In June, it was 5.6 months.
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