New Home Sales for July 2010 - Drop 12.4%

Sales of new one-family houses in July 2010 dropped 12.4%, to 276,000. This is after June's sales were revised down to 315,00 from 330,000.



Inventories are now 9.1 months. This is how long, at the current sales rate, it would take to sell off all of the homes. That's a huge increase. June's inventories of new homes was initially reported as a 7.6 months supply. Now June's new homes inventories was revised to 8 months. In 30 days, we have inventories jumping 1.1 months.

The median sales price of new houses sold in July 2010 was $204,000; the average sales price was $235,300. The seasonally adjusted estimate of new houses for sale at the end of July was 210,000. This represents a supply of 9.1
months at the current sales rate.

Calculated Risk, the uber blog for housing data analysis, shows new home sales are at a record low in the below historical graph of new home sales.



Here is last months unrevised report.

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Housing prices will follow home sales #s

No matter what the Fed does with quantitative easing II, one thing is clear - house prices will follow home sales down. I don't know how they are going to resolve that. I charted Home Prices vs Home Sales data, and the bounce back in sales was thing keeping house prices steady. Here is that chart:

for a long time

I have said prices are out of alignment with income, so beyond the obvious divergence in your graphs, I don't see how they cannot fall further either.

That's going to hurt badly, more underwater, more negative equity and so on, but where do they believe someone who is getting wage squeezed, their jobs cut, age discrimination and the rest can possibly afford even a $1k mortgage payment? It's out of alignment with the U.S. middle class income squeeze.

Are you charging for a host of econ. analysis charts and so on?

If so, I cannot blame you, even with some nicely configured excel files, takes 15 minutes to do each graph.

(Speaking of workin' 4 free!)