New Home Sales Off 33 Percent from Year Ago

October 27, 2008 No Comments »

new homes

Sales of new single-family homes increased 2.7 percent to a seasonally adjusted annual rate of 464,000 last month, but remain 33.1 percent below year ago levels, the Commerce Department said today.

While sales edged up from the revised August rate of 452,000 units, the figure is far below the September 2007 estimate of 694,000 sales.

The median sales price of a new home sold in September was $218,400, down from $220,400 a month earlier and $240,300 a year ago, representing a four-year low.

The average price of a new home sold was $275,500, up from $264,100 in August, but below the $292,200 average price seen last year.

New home sales were up 22.7 percent in the West, up 0.7 percent in the South, down 5.8 percent in the Midwest, and down 21.4 percent in the Northeast.

The number of distressed sales in the West has continued to pressure prices downward, likely boosting new home sales as well.

The number of new homes for sale in the U.S. fell 7.3 percent from August’s 425,000 total to 394,000 in September, down from 528,000 a year earlier.

The current total represents a 10.4-month supply, down from 11.4 months in August, but up from 9.4 months last September.

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