The inventory of unsold homes on the market increased to 511,000 units, the highest level since October 2007, from 505,000 in May. At June’s sales pace it would take 9.8 months to clear the supply of new houses on the market, up from 9.7 months in May. The inventory glut is weighing on new house prices.

The median new house price dropped 2.9% to $401,800 in June from a year earlier. A National Association of Home Builders survey last week showed the share of builders cutting prices to attract buyers rose in July to the highest level since 2022.