Global| Jun 25 2008U.S. New-Home Sales Near The Lowest Since 1991
by:Tom Moeller
|in:Economy in Brief
Summary
Sales new single-family homes fell 2.5% to 512,000 and reversed roughly half of the prior month's increase. Sales were down 63.1% from their July 2005 peak. The decline about matched expectations for a level of 514,000. Overall sales [...]
Sales new single-family homes fell 2.5% to 512,000 and reversed roughly half of the prior month's increase. Sales were down 63.1% from their July 2005 peak. The decline about matched expectations for a level of 514,000.
Overall sales were near their lowest level since 1991 with the worst performance shown by sales in the Midwest and in the Western regions of the country.
The greatest sales decline in May was for homes selling in the $300,000 to $399,000 price range while an increase was logged for lesser priced homes, priced below the $150,000 level.
By region, May sales declined most significantly in the Northeast and in the West. In the South sales were about unchanged and they rose somewhat in the Midwest.
The median price for a new single-family home fell 5.1% to $231,000 from an upwardly revised April level.
The number of new homes for sale fell 2.0% (-17.3%y/y) and reduced the inventory of unsold homes to the lowest level since 2005. The decline in the number of unsold homes has been greatest in the West (-22.9% y/y) and the declines elsewhere in the country about equal the totals' figure.
The month's supply of new homes for sale again ticked lower m/m but remained near the cycle's high.
| US New Homes | May | April | Y/Y | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|
| Total Sales (SAAR, 000s) | 512 | 525 | -40.3% | 768 | 1,049 | 1,279 |
| Northeast | 35 | 38 | -57.8 | 64 | 64 | 81 |
| Midwest | 82 | 78 | -42.3 | 118 | 161 | 203 |
| South | 281 | 280 | -35.0 | 408 | 559 | 638 |
| West | 114 | 129 | -43.0 | 178 | 266 | 356 |
| Median Price (NSA, $) | 231,000 | 243,500 | -5.7 | 243,742 | 243,067 | 234,208 |
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.
More Economy in Brief
