Today, the U.S. Census Department released its monthly New Residential Home Sales Report for January showing continued deterioration of the already hideous falloff in demand for new residential homes both nationally and in every region resulting in an astounding median sales price drop of 15.09%.On a year-over-year basis new home sales are continuing to weaken, dropping a truly ugly 33.9% below the sales activity seen in January 2007 and plunging a whopping 56.67% since the peak set in July 2005.
It’s important to keep in mind that these declines are coming on the back of the significant declines seen in 2006 and 2007 further indicating the significance of the housing bust.
Additionally, although inventories of unsold homes have been dropping for ten straight months, the sales volume has been declining so significantly that the supply has now reached a new peak value of 9.9 months of supply.
The following charts show the extent of sales declines seen since 2005 as well as illustrating how the further declines in 2008 are coming on top of the 2006 and 2007 results (click for larger versions)
Look at the following summary of today’s report:National
- The median price for a new home was down 15.09% as compared to January 2007.
- New home sales were down 33.9% as compared to January 2007.
- The inventory of new homes for sale declined 10.1% as compared to January 2007.
- The number of months’ supply of the new homes has increased 37.5% as compared to January 2007 and now stands at 9.9 months.
- In the Northeast, new home sales were down 16.1% as compared to January 2007.
- In the Midwest, new home sales were down 56.0% as compared to January 2007.
- In the South, new home sales were down 34.8% as compared to January 2007.
- In the West, new home sales were down 10.1% as compared to January 2007.
