For the third straight month, new-home sales fell in July, the Census Bureau reported on Tuesday. However, sales were 6.8 percent higher compared year-over-year from July 2010.

The new-home building industry continues to struggle to compete against a backlog of existing-homes and foreclosures on the market that have pushed prices down.

For July, new homes sold at a seasonally adjusted annualized rate of 298,000, only a 0.7 percent drop from a rate of 300,000 homes sold in June.

The median home price for new-homes was $222,000 in July, which is 5.5 percent down from June. The median price is 8.8 percent higher from 12 months prior. The median price of a new home is more than 30 percent higher than the median price for an existing home, analysts say.

The drop in sales reflects an increasing concern over the economy, said David Crowe, chief economist for the National Association of Home Builders. Crowe said he expects August figures will also drop because of “the market turmoil and the uncertainty it creates in consumers.”

Source: CNNMoney