Today, the U.S. Census Department released its monthly New Residential Home Sales Report for August that again confirmed the hideous falloff in demand for new residential homes as well as reporting a 7.5% decline to the median sales price and significant downward revisions to June and July’s results.
As with prior months, on a year-over-year basis sales are still declining significantly dropping a truly ugly 21.2% below the sales activity seen in August 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 the significance of the housing bust.
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 7.5% as compared to August 2006.
- New home sales were down 21.2% as compared to August 2006.
- The inventory of new homes for sale declined 6.9% as compared to August 2006.
- The number of months’ supply of the new homes has increased 20.6% as compared to August 2006.
- In the Northeast, new home sales were down 14.0% as compared to August 2006.
- In the West, new home sales were down 16.0% as compared to August 2006.
- In the South, new home sales were down 27.1% as compared to August 2006.
- In the Midwest, new home sales were down 11.2% as compared to August 2006.
