New Home Sales Continuing to Decline

The Census Bureau has reported dismal new homes sales data for February, 2011.  New home sales continued to decline in February 2011 to levels not seen in many decades:

Sales of new single-family houses in February 2011 were at a seasonally adjusted annual rate of 250,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.  This is 16.9 percent (±19.1%)* below the revised January rate of 301,000 and is 28.0 percent (±14.8%) below the February 2010 estimate of 347,000.

The median sales price of new houses sold in February 2011 was $202,100; the average sales price was $246,000. The seasonally adjusted estimate of new houses for sale at the end of February was 186,000. This represents a supply of 8.9 months at the current sales rate.

Econintersect evaluates using non seasonally adjusted data.

This data is being compared against home sales a year ago which were artificially boosted by first time home buyers government incentives.  Year-over-year (YoY) comparisons will be negative until mid year.   Even so, the YoY changes plotted show a reversal of what had been improving second derivative trends.

One month is not a trend, but in absolute terms new home sales are dismal.

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