WASHINGTON (MarketWatch) — The sale of new single-family homes fell in August for the fourth month in a row, indicating that the depressed U.S. housing market shows no signs of recovery.
Sales dropped 2.3% last month to an annual rate of 295,000, the lowest level since February, the Commerce Department said Monday. After peaking in 2011 at 316,000 in April, new-home sales have gradually declined.
Economists surveyed by MarketWatch had forecast sales to drop to 292,000 on a seasonally adjusted basis. Sales for July were revised up to 302,000 from an originally reported 298,000.
Sales fell the steepest in the Northeast, down 13.6%. Sales also declined in the West (-6.3%) and South (-2.4%).
In the Midwest, sales rose 8.2%.
While total sales are 6.1% higher compared to one year ago, they still sit near historically low levels. The weak housing market has been a big drag on the economy and that’s unlikely to change until the nation’s high 9.1% unemployment rate declines. Fewer families can afford to buy a home, or they are too concerned about the security of their own jobs to take the plunge.
As a result, the number of unsold new homes on the market fell again last month to 162,000, setting yet another record low. That represented a 6.6 month supply at the August sales pace, unchanged from the prior month.
The average sales price of a new home, which is not seasonally adjusted, sank 8.7% to $246,000, the lowest level since January 2009. The decline likely reflects the willingness of potential buyers to hold off on a purchase to take advantage of further price declines.
The sale of new homes has clung to a narrow range of 275,000 to 331,000 a month over the past year, suggesting that a turnaround is nowhere to be seen.
New home sales averaged 1.05 million a month in 2006 before a housing bubble popped and the market collapsed.
The median sales price, meanwhile, also fell by 8.7%, to $209,100 last month. Economists pay more attention to the median number in tracking new-home prices since it’s less volatile month to month.
Source: www.marketwatch.com
Sales dropped 2.3% last month to an annual rate of 295,000, the lowest level since February, the Commerce Department said Monday. After peaking in 2011 at 316,000 in April, new-home sales have gradually declined.
Economists surveyed by MarketWatch had forecast sales to drop to 292,000 on a seasonally adjusted basis. Sales for July were revised up to 302,000 from an originally reported 298,000.
Sales fell the steepest in the Northeast, down 13.6%. Sales also declined in the West (-6.3%) and South (-2.4%).
In the Midwest, sales rose 8.2%.
While total sales are 6.1% higher compared to one year ago, they still sit near historically low levels. The weak housing market has been a big drag on the economy and that’s unlikely to change until the nation’s high 9.1% unemployment rate declines. Fewer families can afford to buy a home, or they are too concerned about the security of their own jobs to take the plunge.
As a result, the number of unsold new homes on the market fell again last month to 162,000, setting yet another record low. That represented a 6.6 month supply at the August sales pace, unchanged from the prior month.
The average sales price of a new home, which is not seasonally adjusted, sank 8.7% to $246,000, the lowest level since January 2009. The decline likely reflects the willingness of potential buyers to hold off on a purchase to take advantage of further price declines.
The sale of new homes has clung to a narrow range of 275,000 to 331,000 a month over the past year, suggesting that a turnaround is nowhere to be seen.
New home sales averaged 1.05 million a month in 2006 before a housing bubble popped and the market collapsed.
The median sales price, meanwhile, also fell by 8.7%, to $209,100 last month. Economists pay more attention to the median number in tracking new-home prices since it’s less volatile month to month.
Source: www.marketwatch.com
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