I’ve been on calls all morning, didn’t get a chance to follow up with the New Home Sales. Here are some highlights from the data:
• February 2008 saw a drop of 1.8% from January 2008 (±15.0%) in terms
of seasonally adjusted, annualized data; This was not a statistically
significant number, given the margin of error.
• Year-over-year, the drop
was 29.8% below the February 2007 data (±9.6% means this is
• Sales have fallen four months in a row
• The Median and Average sales price of new houses in February 2008 was $244,100 and $296,400 respectively. Median sales price fell 2.7% in the past year to $244,100.
• Sales of new homes in the United States fell to a 13-year low
• Sales figures are overstate due to the omission of the "ballooning number of sales that have been
• February’s supply of new homes on the market hit a 27-year high; Inventories are likely understated, also because of cancellations.
• The pace of sales has slowed, leading Inventory
represented a 9.8-month supply at the February sales rate, unchanged
from January and the highest since 1981.
• The number of completed homes for sale fell for the second straight
month, standing at 188,000 after peaking in December at 197,000.
• A few pieces of encouraging data: The number of homes on the market dropped by 2.1% to 471,000, the
lowest since July 2005. Also, s ales in January and December were revised modestly higher;
Check out the two charts below: I particularly like the cool chart from Brian Jacobs, pricing Median Home Prices in terms of Gold (ounces):
Courtesy of Barron’s Econoday
NEW RESIDENTIAL SALES IN FEBRUARY 2008
Commerce Dept, March 26, 2008
New-home sales fall to 13-year low
MarketWatch, 10:53 a.m. EDT March 26, 2008