New Home Sales Remain At Historic Lows

Last month (October 2010), Econintersect stated new home sales were at historic lows (analysis here).  The November 2010 data is worse.  The headlines:

Sales of new single-family houses in November 2010 were at a seasonally adjusted annual rate of 290,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.  This is 5.5 percent (±16.2%)* above the revised October rate of 275,000, but is 21.2 percent (±13.3%) below the November 2009 estimate of 368,000.

The median sales price of new houses sold in November 2010 was $213,000; the average sales price was $268,700. The seasonally adjusted estimate of new houses for sale at the end of November was 197,000. This represents a supply of 8.2 months at the current sales rate.

Econintersect views unadjusted data.  The graph of sales since 2005 tells the story with no narrative necessary.

There is truth that November sales are normally lower then October – and that the November 2010 drop was proportionally less.  But when the data is at historical lows – this call is academic.

Related Articles

New Residential Construction is Almost Comatose in November  by Steven Hansen

Pending Home Sales Indicate 25% YoY Home Sales Decline for November  by Steven Hansen