Sales of new homes declined unexpectedly in July, the government said on Wednesday in the second report this week that showed that the housing sector stalled last month.

The Commerce Department reported that sales of new homes in July fell 12.4 percent from June, to a seasonally adjusted annual rate of 276,000 units. That was the lowest level in July since the government began keeping track in 1963

July sales of new homes were 32.4 percent below sales for July 2009. Analysts surveyed by Thomson Reuters had expected sales to be flat in July from June. June sales were revised down to a seasonally adjusted annual rate of 315,000, from 330,000, after May fell to an annual rate of 267,000.

The report also said the median sales price was $204,000 in July, down 6 percent from June and 4.8 percent from July 2009. The average sales price was $235,300 in July, down 3.1 percent from June.