New Home Sales Fall to Five-Month Low

New home sales fell for the third straight month in July, declining 0.7% to 298,000, the lowest level in five months, the Commerce Department said Tuesday.

Economists had forecast the July rate to be 310,000, Bloomberg reported.

The median price increased 4.7% from the same month in 2010 to $222,000.

Sales fell in two of four regions, led by a 7.4% downturn in the South. Demand fell 5.9% in the West.

New home sales account for about 15% of residential real estate sales. Rising home sales can mean more business for flatbed trucking companies that haul building materials and dry van freight carriers that haul household appliances and furniture.