The press release for the July 2010 new home sales says it all – new home sales have collapsed to the lowest July levels since the index was created in 1963:
Sales of new single-family houses in July 2010 were at a seasonally adjusted annual rate of 276,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 12.4 percent (±10.8%) below the revised June rate of 315,000 and is 32.4 percent (±8.7%) below the July 2009 estimate of 408,000.
The median sales price of new houses sold in July 2010 was $204,000; the average sales price was $235,300. The seasonally adjusted estimate of new houses for sale at the end of July was 210,000. This represents a supply of 9.1 months at the current sales rate.
A review of the unadjusted data shows good and bad trends. This was the lowest July sales in the history of this index which began in 1963. Literally, new home sales has collapsed. The good news is that the inventory of the homes for sale is now well below historical levels.