US: Parade of disappointing housing data continues - Wells Fargo

Today’s data showed a decline in new homes sales in July of 1.7%. According to analysts at Wells Fargo, the data was influence by bad weather but they point out that housing is clearly on the slow track. 

Key Quotes: 

“Sales of new homes fell 1.7 percent in July, following a 2.4 percent drop in June. Sales have fallen in three of the past four months. The culprit this month appears to be the weather.”

“While the weather is likely responsible for July’s drop, new home sales clearly remain on the slow track. Sales in the Northeast are also likely being impacted by new limits on tax deductions for interest and local taxes. Foreign demand has also cooled.”

“We doubt demand has weakened all that much, however, as both the average and median home price rose in July and remains within its recent range on a year-to-year basis.”