New Home Sales Fall 34%

Another month, another disasterous housing data point:

Sales of new one-family houses in April 2009 were at a seasonally adjusted annual rate of 352,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.3 percent (±14.5%)* above the revised March rate of 351,000, but is 34.0 percent (±11.0%) below the April 2008 estimate of 533,000.

The median sales price of new houses sold in April 2009 was $209,700; the average sales price was $254,000.  Median prices of a new home decreased 14.9%

The seasonally adjusted estimate of new houses for sale at the end of April was 297,000. This represents a supply of 10.1 months at the current sales rate.

Note (once again) that the monthly data is statistical noise at 0.3% with a ±14.5% margin of error; the annual fall of 34% is statistically significant versus 11% error).

The usual headlines got it wrong:

Bloomberg: New-Home Sales in U.S. Climbed 0.3% to 352,000 Pace

Marketwatch:  Home sales up paltry 0.3% 

Reuters: US new home sales rose 0.3 percent in April

• Associated Press: April new home sales inch upward 

WSJ: New-Home Sales Rise as Prices Tumble

No, we cannot accurately state that home sales went up in April 2009. Yes, we do know that sales fell (between 23% and 45%) year over year. 

Note the Non-seasonally adjusted pattern is typical; the sales data follows the historical trend. 

Bottom line: Yet another bad RE number.

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nhsapril09nsa

via Calculated Risk

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Source:
NEW RESIDENTIAL SALES IN APRIL 2009
Manufacturing and Construction Division
MAY 28, 2009 AT 10:00 A.M. EDT http://www.census.gov/const/newressales.pdf

New-Home Sales in U.S. Climbed 0.3% to 352,000 Pace 
Bob Willis
Bloomberg, May 28 2009
http://www.bloomberg.com/apps/news?pid=20601068&sid=a_syIHolWEnY&

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