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Thursday, October 27, 2005

September New Home Sales: 1.222 Million

by Calculated Risk on 10/27/2005 09:58:00 AM

According to the Census Bureau report, New Home Sales in September were at a seasonally adjusted annual rate of 1.222 million vs. market expectations of 1.25 million. August sales were revised down to 1.197 million from 1.237 million.

Click on Graph for larger image.

NOTE: The graph starts at 700 thousand units per month to better show monthly variation.

Sales of new one-family houses in September 2005 were at a seasonally adjusted annual rate of 1,222,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.

The Not Seasonally Adjusted monthly rate was 97,000 New Homes sold, down from a revised 103,000 in August.

On a year over year basis, September 2005 sales are still higher than September 2004.

The median sales price continued to fall.

The median sales price of new houses sold in September 2005 was $215,700; the average sales price was $285,700.

The seasonally adjusted estimate of new houses for sale at the end of September was 493,000. This represents a supply of 4.9 months at the current sales rate.

The 493,000 units of inventory is the all time record for new houses for sale. On a months of supply basis, this is the highest inventory since December 1996 - the end of the previous housing slowdown.

The downturn observed in August has continued into September. This report shows a significant downturn in the New Home Sales market. Sales were off. Inventories were up. Revisions were negative.

It appears the housing market is slowing.