Global| May 28 2009U.S. New Home Sales Form A Bottom While The Level of Unsold Homes Is At Its Lowest Since 2001
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of new single-family homes during April showed further signs of forming a bottom after having declined by more than three-quarters since 2005. Sales were stable at 352,000 units (AR) after a downwardly revised March decline. [...]
Sales of new single-family homes during April showed further signs of forming a bottom after having declined by more than three-quarters since 2005. Sales were stable at 352,000 units (AR) after a downwardly revised March decline. They have varied in a range of 329,000 to 362,000 so far this year. April sales fell short of Consensus expectations for 360,000 units. 
Around the country sales patterns vary. Sales in Midwest were stable last month near their record low while sales in the Northeast also were stable at a new record low. Sales in the South picked up slightly as did sales out West.
The modest firming of home sales gave rise to an increase in the median price for a new single-family home. At $209,700 the figure was at its highest since November, however, that increase may be due to a usual seasonal gain. Since their peak early in 2007, new home prices have fallen by roughly one-quarter.
Price weakness has helped move the inventory of unsold homes. It's down by nearly one-half since the peak during 2006 and at the lowest level since 2001. In each of the country's regions, the inventory is down by roughly one-third just during the last year.The month's supply of new homes for sale also has started to drop, in April to the lowest level since last July. But there's more inventory to move with lower prices if sales remain low.
The new home sales figures are available in Haver's USECON database.
| US New Homes | April | March | Y/Y (%) | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|---|
| Total Sales (SAAR, 000s) | 352 | 351 | -34.0 | 479 | 768 | 1,049 |
| Northeast | 19 | 19 | -52.5 | 35 | 64 | 64 |
| Midwest | 45 | 45 | -45.8 | 69 | 118 | 161 |
| South | 212 | 206 | -25.4 | 264 | 408 | 559 |
| West | 76 | 79 | -39.7 | 111 | 178 | 266 |
| Median Price (NSA, $) | 209,700 | 202,200 | -14.9 | 230,408 | 243,742 | 243,067 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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