New Home Sales Deceptive Jump, up 23.6% from June

New Home Sales jumped 23.6% in June 2010. Why the jump? May's new home sales numbers were revised, from 300,000 to 267,000. Instead of a 32.7% plunge from April, we had a 40.1% decline from April to May. April 2010 annual rate was 440,000 single family new home sales. This months sales, June 2010 were down 25% from April 2010.



Sales of new single-family houses in June 2010 were at a seasonally adjusted annual rate of 330,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
This is 23.6 percent (±15.3%) above the revised May rate of 267,000, but is 16.7 percent (±10.9%) below the June 2009 estimate of 396,000.



The median price was $213,400; the average was $242,900. The inventory is 7.6 months for a total of 210,000. Inventories had a -20.8% drop from May nationally.

Regionally, new home sales were:

  • NorthEast: 46.4%
  • MidWest 20.5%
  • South: 33.1%
  • West: -6.6%

Bloomberg out did themselves in happy numbers talk by claiming the slump is over. This is why graphs and longer term data examination are so important. One month does not a trend make and if one doesn't pay attention to revisions, well, one might write a real nice warm fuzzy headline that belials the actual statistics.

Calculated Risk, who cranks the numbers, immediately saw why the jump and headlined his post June is the worst June on record(yr-yr) for new home sales.

Subject Meta: 

Forum Categories: