Today, the U.S. Census Department released its monthly New Residential Home Sales Report for October that continued to confirm the hideous falloff in demand for new residential homes both nationally and in every region as well as again reporting significant downward revisions to July, August and September’s results.Additionally, today’s report appears to reflect, at least in part, the extent to which the summer “fire sale” activity has had on pricing with a 13.02% decline in the median home sales price.
As with prior months, on a year-over-year basis new home sales are still declining significantly, with the national measure dropping a truly ugly 23.5% below the sales activity seen in October 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 13.02% as compared to October 2006.
- New home sales were down 23.5% as compared to October 2006.
- The inventory of new homes for sale declined 6.7% as compared to October 2006.
- The number of months’ supply of the new homes has increased 19.7% as compared to October 2006.
- In the Northeast, new home sales were up 43.6% as compared to October 2006.
- In the West, new home sales were down 37.7% as compared to October 2006.
- In the South, new home sales were down 25.0% as compared to October 2006.
- In the Midwest, new home sales were down 11.7% as compared to October 2006.
