Another ugly New Home Sales report: There was no statistically significant monthly improvement, as the reported change of 0.6% was within the margin of error of ±19.0%. The year-over-year data, however, was god-awful: A drop of 30.6% (±10.7%) below the March 2008 data.
There is a slight silver lining in the inventory: Months supply fell to 10.7 from 11.2 — the lowest level since October 2008. The cycle high was in January 2009 at 12.5. And the absolute # of homes for sale fell to 311k from 328k to the lowest since Jan ’02. While this is an improvement, 6 months is the 30 year average, so we still have a ways to go.
And as Rex Nutting points out, even with Builders cutting prices in March, “the time it takes to sell a home rose to record high of 10.2 months.” Blame competition from cheap foreclosures, with nearly half of all existing sales distressed property.
New Home Sales
Source: Census Bureau
Media Misreports New Home Sales –they didn’t rise, they fell 41% (March 26th, 2009)
NEW RESIDENTIAL SALES IN MARCH 2009
Census Bureau, APRIL 24, 2009 AT 10:00 A.M. EDT
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.