July home sales up 1% as prices reach unprecedented levels

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — Sales of new homes rose a modest 1% in July after a string of declines while new home prices set records. The Commerce Department reported Tuesday that July sales increase left sales at a seasonally adjusted annual rate of 708,000. Sales had fallen in April, May and June as builders confronted problems with surging lumber prices and a shortage of construction workers. Home prices, however, have continued to rise, setting new records in July. The median price of a new home sold in July climbed to an all-time high of $390,500, up 18.4% from a year ago.