Sales of new homes rose a modest 1% in July after a string of declines as new home prices soar to record levels, the Associated Press reported. Sales last month reached a seasonally adjusted annual rate of 708,000, the Commerce Department reported Tuesday. Sales had fallen in April, May and June as builders confronted surging lumber prices and a shortage of workers. Home prices continue their upward trajectory to new heights. The median price of a new home sold in July climbed to an unprecedented $390,500, up 18.4% from a year ago, while the average sales price in July hit a record $446,000, up 17.6% from a year ago. Even with the small sales gain in July, new home sales are 27.2% below the pace of a year ago. Sales peaked at a rate of 993,000 units in January but have cooled since then, though remain at historically high levels.
