According to the LA Times;

Continuing Decline:

Higher mortgage interest rates along with rising home prices are said to be the main culprits for a decline in home sales for the month of July. According to The National Association of Realtors, sales are down 1.3%, which continues a downward trend from the previous month. This figure is greater than projections indicated, however it is an improvement of 6.7% from July 2012. Home sales are documented in a sales index with the pending index at a figure of 109.5 for July. A figure of 100 is normal. Both supply and home prices increased in July compared with a month earlier. In June, buyers paid a median of $257,200 for a new home. Builders are said to be more confident with the housing recovery, however construction levels are not as high as they should be. The chief concerns of developers are a lack of available lots that are in good condition for construction as well as a decrease in qualified labor that can perform at a high level.