Sales of new U.S. houses slumped 3.4% in August, the second straight monthly decline.
The sales dropped to a seasonally adjusted annual rate of 560,000, which follows a 5.5% decline in July, the Commerce Department says. Still, year-to-date sales are running 7.5% ahead of this time last year thanks to strong sales in the early months of 2017.
Home sales could worsen in coming months as parts of Texas and Florida— hit by Hurricanes Harvey and Irma, respectively—suffer new construction delays as the focus is on rebuilding flood- and wind-damaged properties.
Still, August’s drop in new home sales points to the limits of the rebound from the Great Recession and the housing bust that triggered the downturn a decade ago.
Home values have climbed at a much faster pace than incomes, meaning that many buyers had to strain their budgets to purchase a house.
Low mortgage rates reduced the financial crunch somewhat, but then listings began to dwindle and many would-be buyers have found themselves outbid on existing homes and priced out of new housing developments.
