New Home Sales Up 9.6% Nationwide

The U.S. Commerce Department reports that New Home Sales for the month of July increased 9.6% nationwide, the largest increase since February 2005. This marks the 5th increase in the past 7 months. New Home inventory dropped to it's lowest level in 16 years. The median price for a new home was $210,100 in July compared to $237,300 last year.

Home sales are being driven by historically low interest rates and lower prices due to forelcosures depressing values. The government is also giving First Time Home Buyers a $8000 Tax Credit as an incentive as well. The tax credit current expires on November 30th unless Congress approves an extension.