New Home Sales Plunge 33%

Sales of new homes fell 33% in May 2010.

With the expiration of the artificial government demand created by the tax cut left little doubt that new home construction is in for a challenging few quarters.

The caveat: This data series is notoriously noisy, and you are must better off using a 3 month moving average than read too much into any single month.

Highlights:

• Sales fell 32.7% below the April 2010 and were off 18.3% below the May 2009.

• Median sales price decreased 9.6% from May 2009 to $200,900.

• Purchases dropped in all four U.S. regions last month.

• A record 53% sales drop occurred in the West.

• Supply of homes jumped to 8.5 month’s worth, up from 5.8 months in April.

Note that May is usually an improved month versus April.

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New Home Sales May 2010, NSA


Chart courtesy of Calculated Risk

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Previously:
New Home Sales Data: Don’t rely On It Either (November 30th, 2005)
http://www.ritholtz.com/blog/2005/11/new-home-sales-data-dont-rely-on-it-either/

Home Builders Sell Signals (June 21, 2010)
http://www.ritholtz.com/blog/2010/06/home-builders-sell-signals/

Source:
NEW RESIDENTIAL SALES IN MAY 2010
Department of Commerce, Manufacturing and Construction Division
http://www.census.gov/const/newressales.pdf

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