New-Home Sales Tumble 45%

January 29, 2009 11:06am by Barry Ritholtz

This is a brutal number: New Home Sales fell last in December 2008 to the lowest level on record — a seasonally adjusted annual rate of 331,000.

Month over month, the drop was 14.7% (±13.9%), and year over year, the collapse was an astounding 44.8% (±10.8%) below December 2007.

If we take the raw sales data (NSA), the level of home sales in 2008 was 482,000, the lowest since 412,000 in 1982, the WSJ reported.

Other data points:

▪ The median sales price of new houses sold in December 2008 was $206,500;

▪ The average sales price was $246,900.

▪ Seasonally adjusted estimate of new houses for sale = 357,000, a supply of 12.9 months at the current sales rate;

▪ This inventory to sales ratio is a new all time high dating back to at least 1963.

▪ 482,000 new homes were sold in 2008, a decrease of 37.8% (±2.7%) below the 2007’s 776,000;

Monthly New Home Sales (NSA) 2003-08

via Calculated Risk

Sources:
New Home Sales in December
The Census Bureau, Bloomberg, Jan. 29 2009
http://www.census.gov/const/newressales.pdf

U.S. New-Home Sales Fell in December to Lowest Level on Record
Bob Willis
Bloomberg, Jan. 29 2009
http://www.bloomberg.com/apps/news?pid=20601087&sid=alipKvn3NBxg&

New-Home Sales Tumbled in December
BRIAN BLACKSTONE and JEFF BATER
WSJ, JANUARY 29, 2009, 10:15 A.M. ET
http://online.wsj.com/article/SB123323520291728517.html

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/

twitter

facebook