Today, the U.S. Census Department released its monthly New Residential Home Sales Report for May showing renewed declines and a 5.10% downward revision to last month’s unexpected “surge”.As with prior months, on a year-over-year basis sales are still declining in the double digits at 15.8% below the sales activity seen in May 2006.
It’s important to keep in mind that these declines are coming on the back of the significant declines seen in 2006 further indicating that the decline is not abating.
This should not be understated as it is clearly showing continued and even accelerating weakness to new home sales.
The following charts show the extent of sales declines seen since 2006 as well as illustrating the further declines 2007 is showing on top of the 2006 results (click for larger versions)
Note that the last chart essentially combines the year-over-year changes seen in 2005 and 2006 and shows sales trending down precipitously as compared to the peak period.
Look at the following summary of today’s report:
National
- The median price for a new home was down .88% as compared to May 2006.
- New home sales were down 15.8% as compared to May 2006.
- The inventory of new homes for sale declined 5.0% as compared to May 2006.
- The number of months’ supply of the new homes has increased 14.5% as compared to May 2006.
- In the Northeast, new home sales were up 19.1% as compared to May 2006.
- In the West, new home sales were down 21.1% as compared to May 2006.
- In the South, new home sales were down 17.9% as compared to May 2006.
- In the Midwest, new home sales were down 21.1% as compared to May 2006.
