by Bill McBride on 10/25/2007 10:00:00 AM
Thursday, October 25, 2007
According to the Census Bureau report, New Home Sales in September were at a seasonally adjusted annual rate of 770 thousand. Sales for August were revised down to 735 thousand, from 795 thousand. Numbers for June and July were also revised down.
Click on Graph for larger image.
Sales of new one-family houses in September 2007 were at a seasonally adjusted annual rate of 770,000 ... This is 4.8 percent above the revised August rate of 735,000, but is 23.3 percent below the September 2006 estimate of 1,004,000.
The Not Seasonally Adjusted monthly rate was 60,000 New Homes sold. There were 80,000 New Homes sold in September 2006.
September '07 sales were the lowest September since 1995 (54,000).
The median and average sales prices are declining. Caution should be used when analyzing monthly price changes since prices are heavily revised and do not include builder incentives.
The median sales price of new houses sold in September 2007 was $238,000; the average sales price was $288,000.
The seasonally adjusted estimate of new houses for sale at the end of September was 523,000.
The 523,000 units of inventory is slightly below the levels of the last year.
Inventory numbers from the Census Bureau do not include cancellations - and cancellations are once again at record levels. Actual New Home inventories are probably much higher than reported - probably about 100K higher.
This represents a supply of 8.3 months at the current sales rate
This is another very weak report for New Home sales. The stunning - but not surprising - downward revision to the August sales numbers was extremely ugly. This is the second report after the start of the credit turmoil, and, as expected, the sales numbers are very poor.
I expect these numbers to be revised down too. More later today on New Home Sales.