Just In: New Home Sales Data Worse Than Expected
WASHINGTON (AP) — Government data show sales of new homes dropped sharply in August, falling to the slowest pace in 17 years. The average sales price fell by the largest amount on record, too. The Commerce Department said Thursday that new homes sales fell by 11.5 percent in August to a seasonally adjusted annual sales…
WASHINGTON (AP) — Government data show sales of new homes dropped sharply in August, falling to the slowest pace in 17 years. The average sales price fell by the largest amount on record, too. The Commerce Department said Thursday that new homes sales fell by 11.5 percent in August to a seasonally adjusted annual sales rate of 460,000 units, the slowest sales pace since January 1991. It was a much bigger sales decline than the small 1 percent drop that economists had been expecting. The average price of a new home sold in August dropped by a record amount of 11.8 percent to $263,900, compared to the July average of $299,100. The median price was also down, falling 5.5 percent to $221,900.
Update: Check out this graph and commentary from Calculated Risk!
New Home Sales Plummet in August, Prices Tumble [AP]
It’s definitely started, but it’s still in the denial phase where buyers haven’t come around to the fact they will have to lower prices and sellers are skittish about catching a falling knife.
How long before Brownstone Brooklyn starts feeling the pinch? Or has it started already?
So if median new home price is $221,000k –
then ther must be plenty of new homes for about $200k because there are plenty of them in exurbia for $400k+.
So where are these new $200K homes and what do they look like , made of?
That should be next week at this rate.
That said, a 10-12% price drop is what you normally see during NORMAL times anyway. Get back to me when the number is 20%.
The majority of newly built homes across the country are crap. Invest in bricks and brownstone. Go Brooklyn!!!
Average price down 11% and median price down 5.5% in one month. That’s a pretty sever drop.
don’t bother clicking on the link — that’s the whole article!
Oh, but I do like your snazzy graphic big red down arrow!