New Home Sales Continue Decline
CVN Choices
08-25-2010
The Census Bureau is reporting that New Home Sales in July
were at a seasonally adjusted annual rate (SAAR) of 276
thousand. This is an decrease from the record low of 315
thousand in June (revised down from 330 thousand).
The actual number of new homes sold was 25,000. The
previous record low for July was 31,000 in 1982.
The record high was almost 5 times higher, 117,000
in July of 2005.
New home sales are actually far more important for
the economy than sales of existing homes since
they involve more jobs as well as sales of building
materials.
As with existing homes, the inventory of new homes
for sale increased to 9.1 months. Less than 6 months
supply is normal.
Sales fell the most in the West, 25%; the Northeast, 13.9%;
and least in the South and Midwest by just over 8%.
|
