New home sales decline continued in August 2010. The data release was accompanied with the following headline statement:
Sales of new single-family houses in August 2010 were at a seasonally adjusted annual rate of 288,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is unchanged (±16.7%)* from the revised July rate of 288,000 and is 28.9 percent (±11.0%) below the August 2009 estimate of 405,000.
The median sales price of new houses sold in August 2010 was $204,700; the average sales price was $248,800. The seasonally adjusted estimate of new houses for sale at the end of August was 206,000. This represents a supply of 8.6 months at the current sales rate.
Viewing the unadjusted data, it does support an “unchanged” MoM – but possibly with a continuing downward bias. With the oversupply of existing homes, it is most likely positive economically that new home sales and supply continue to decline.
The supply of unsold new homes continues to decline.