New home sales in the United States declined in July, hitting a seven-month low, which is a negative sign regarding the market’s hunger for housing supply.

Data released today by the U.S. Department of Commerce showed that seasonally adjusted new home sales fell by 9.4% to 571,000 units in July from 630,000 in June, and an 8.9% decline from the same period in 2016.

Average home prices in July reached $313,700, an increase of 6.3% compared to the same period in 2016.