Housing Recession Just Builds

The Commerce Department reported Tuesday that new-home sales rose by 2.4 percent last month to a seasonally adjusted annual rate of 515,000 units, the most since April. But sales in June had plummeted to a pace of just 503,000 _ down from previous estimates of 530,000 _ to mark the worst showing since September 1991.

The average price of a new-home sold in July was $294,600, down 4.1 percent from a year ago. The median home price _ where half sell for more and half for less _ was $230,700, down 6.3 percent from last year.

A separate report, released Tuesday, showed that home prices dropped by the sharpest rate ever in the second quarter. The Standard & Poor's/Case-Shiller U.S. National Home Price Index tumbled a record 15.4 percent during the April-June period.

On Monday, the National Association of Realtors reported that there was an 11.2 months' supply of previously-owned homes for sale last month, compared to about a six-month supply that usually accompanies healthy housing markets. Sales of previously-owned homes make up about 85% of the market and have been hampered by a flood of foreclosed properties that's expected to continue through next year