Sales still slow for new homes

July survey reports falling prices and fewer sales, thanks to problematic appraisals and price pressure from foreclosures and resales.

New homes sold at a slower pace in July, according to the John Burns Real Estate Consulting monthly survey released Thursday, with an average of 1.6 net sales per community, compared to historical norms of four net sales monthly per community.

Difficulties with appraisals were recognized as one of the major setbacks, with many proving to be lower than a new home’s sales price. But appraisals represent just one aspect of July sales challenge: John Burns Real Estate Consulting survey also concluded that the prices of homes are continuing to decline due to pressure from foreclosures and resales.

The firm said the pricing exceptions seemed to be well-located projects in Washington, D.C., which have seen their prices stabilize in the last month, and California, where reports of price stability are emerging