New home sales advanced by 9.6% in July, beating expectations for a 5% increase and following up on a 9.1% advance in the prior month, according to the U.S. Commerce Department.
 
July marks the fourth consecutive monthly increase, pushing the annual pace of sales to 433,000-the first time same sales have passed the 400,00 mark since October. The annual rate is still 13.4% below the pace in July 2008, yet that compares nicely with the 19.1% annual decline reported in June.
 

At the current sales pace there are 7.5 months worth of inventory on the market, compared with 8.5 months in June. Overhang peaked in January at 12.1 months, and then fell in four of the past five months.
 
According to analysts at RDQ, the number of unsold new homes, in absolute numbers, is the lowest since March 1993. Sales in the Northeast advanced by nearly one-third (32.4%), while sales in the South climbed 16.2%, and sales in the West inched up 1%. In the Midwest, however, sales dropped 7.6%.
 
As for housing prices, the median during the month was $210,100, about equivalent to the figure in June and broadly in line with prices seen in 2009.

Source: CNNMoney.com