Pappas Realty Co... "Commercial Real Estate...Exclusively" in Northeast Ohio since 1957

Wednesday, November 26, 2008

New-Home Sales Decline 5.3%

New-Home Sales Decline 5.3%


New-home sales tumbled to the lowest level in 17 years during October, while prices kept retreating.

Sales of single-family homes decreased by 5.3% to a seasonally adjusted annual rate of 433,000, the Commerce Department said Wednesday. September new-home sales rose 0.7% to an annual rate to 457,000; originally, the government said September sales climbed 2.7% to 464,000.

Economists surveyed by Dow Jones Newswires had called for a 3.0% drop in sales to a 450,000 annual rate. The level of 433,000 was the lowest since 401,000 in January 1991.

Developments: Home Builders' Stocks Rise
A weak job market, with non-farm payrolls receding 10 straight months, and tighter mortgage financing are hurting home-buying. Year over year, new-home sales were 40.1% lower than the level in October 2007.

Falling sales and prices have sent builders hiding. Housing starts decreased a fourth month in a row during October, the government reported a week ago. Starts fell 4.5% to a seasonally adjusted 791,000 annual rate.

The National Association of Home Builders latest monthly survey of builders' thoughts on market prospects sank to an all-time low; the November index for sales of new, single-family homes tumbled to nine from the previous record 14 in October, the NAHB reported last week.

The Commerce Department report Wednesday showed there were an estimated 381,000 homes for sale at the end of October, representing a 11.1 months' supply at the current sales rate. In September, an estimated 414,000 were for sale, a 10.9 months' inventory.The median price of a new home fell 7.0% to $218,000 in October, down from $234,300 in October 2007. The average price decreased 12.2% to $272,300 from $310,100 a year earlier. In September this year, the median price was $221,700 and the average was $283,700.

Regionally last month, new-home sales fell 18.0% in the West and 6.0% in the South. Sales rose 22.6% in the Northeast and 6.0% in the Midwest.

An estimated 34,000 homes were actually sold in October, down from 36,000 in September, based on figures not seasonally adjusted.

Labels: , , , ,


Post a Comment

Subscribe to Post Comments [Atom]

<< Home