Today, the U.S. Census Department released its monthly New Residential Home Sales Report for February showing accelerating deterioration of the already hideous falloff in demand for new residential homes across every tracked region resulting in a 29.8% year-over-year decline and a truly whopping 57.52% peak sales decline nationally.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 eleven straight months, the sales volume has been declining so significantly that the sales pace has now maintained a peak value of 9.8 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 2.67% as compared to February 2007.
- New home sales were down 29.8% as compared to February 2007.
- The inventory of new homes for sale declined 13.4% as compared to February 2007.
- The number of months’ supply of the new homes has increased 21.0% as compared to February 2007 and now stands at 9.8 months.
- In the Northeast, new home sales were down 19.6% as compared to February 2007.
- In the Midwest, new home sales were down 42.5% as compared to February 2007.
- In the South, new home sales were down 27.9% as compared to February 2007.
- In the West, new home sales were down 28.3% as compared to February 2007.
