New Home Sales Are Down, But Market Volatility Is Expected

While it is true that new home sales fell 9.4 percent in July to 571,000 units, Zillow reports that monthly reports contain a wide statistical confidence interval and are often revised throughout the year.

Zillow notes that new home sales in April, May, and June were revised upward by 46,000 units combined.

Meanwhile, the number of new homes for sale rose by 4,000 units in July to 276,000, the highest level since the summer of 2009. The July figures were pumped up by completed or under-construction new homes.

The median seasonally adjusted price of a new home rose 2.7 percent from June and 6.5 percent from last year to $320,100. New home price growth is slowing, down to 1.4 percent compared to 5.2 percent at this time last year. Zillow says that builders are making an effort to construct more affordable homes.

Read more