Today, the U.S. Census Department released its monthly New Residential Home Sales Report for February showing continued deterioration in demand for new residential homes across every tracked region resulting in a startling 41.08% year-over-year decline and a truly horrendous 75.74% peak sales decline nationally.It’s important to keep in mind that this stunning year-over-year decline is coming on the back of the significant declines seen in 2006, 2007 and 2008 further indicating the enormity of the housing bust and clearly dispelling any notion of a housing bottom having been reached.
Additionally, although inventories of unsold homes have been dropping for well over a year, the sales volume has been declining so significantly that the sales pace now stands at an astonishing 12.2 months of supply.
The following charts show the extent of sales declines seen since 2005 as well as illustrating how the further declines in 2009 are coming on top of the 2006, 2007 and 2008 results (click for larger versions)
Look at the following summary of today’s report:National
- The median sales price for a new home declined 18.1% as compared to February 2008.
- New home sales were down 41.08% as compared to February 2008.
- The inventory of new homes for sale declined 30.8% as compared to February 2008.
- The number of months’ supply of the new homes has increased 25.8% as compared to February 2008 and now stands at 12.2 months.
- In the Northeast, new home sales were down 25.6% as compared to February 2008.
- In the Midwest, new home sales were down 35.1% as compared to February 2008.
- In the South, new home sales were down 38.5% as compared to February 2008.
- In the West, new home sales were down 54.2% as compared to February 2008.
