Today, the U.S. Census Department released its monthly New Residential Home Sales Report for September showing continued weakness with sales climbing 6.6% since August to 307K annualized units, near the lowest level on record.On a year-over-year basis, new single family home sales plunged a whopping 21.5% while the monthly supply increased 3.9% to 8.0 months.
These results provide even more evidence that the government's housing tax scam policy was ultimately a complete and total failure accomplishing nothing but creating a temporary distortion of the underlying "organic" housing trends.
With numbers this weak, it could even be argued that the government's tax gimmick ultimately destabilized the nation's home markets by injecting a substantial amount of uncertainty, sponsoring feeble home buyers and preventing the natural market clearing mechanism from playing out.
The following charts show the extent of sales decline (click for full-larger version)
