New Home Sales Languish Below 1983 Levels

Posted on November 28, 2011

The U.S. Census Bureau and U.S. Department of Housing and Urban Development reported that new home sales declined to a seasonally adjusted annual rate of 307,000. This is 1.3 percent higher than the revised september rate of 303,000. Compared to last year new home sales were 8.9% higher.

Prices of new home sales were down slighty in October. The median sales price in October was $212,300 and the average sales price was $242,300, both declines from the previous month. Inventories of new homes fall to 162,000 units from 165,000 units in September. This represents a supply of 6.3 months, also lower than September.

New Home Sales Jan 1963 to October 2011

Source: The Mays Report

I’ve looked at writing another piece on housing but the fundamentals are have not changed since the last piece I penned. Until employment levels improve new home sales are likely to languish below levels not seen since the two recessions in the early 1980’s.

New Home Sales (Seasonally Adjusted Annual Rate)
  Previous Consensus Actual
Sales 313,000 310,000 307,000