Monday, July 27, 2009

New Home Sales Increase Three Months in a Row For the FIrst Time in Five Years

Wall Street Journal -- New-home sales soared in June from the previous month, the third increase in a row and supplying fresh evidence the housing market is beginning to recover from its long crisis. Sales of single-family homes increased by 11.0% to a seasonally adjusted annual rate of 384,000 compared to the prior month, the Commerce Department said Monday.

The increase was the fourth in five months, as buyers take advantage of falling prices. It appears new-home sales reached a bottom in January, at a level of 329,000, and that the market is beginning to recover slowly. The level of 384,000 in June was the highest since 390,000 last November.


MP: The three consecutive monthly increases in new home sales for April, May, and June of this year was the first time since the summer of 2004 that new home sales increased three months in a row. The sales increases in four out of the last five months follows a long string of declines in 18 out the previous 21 months going back to May 2005 (see chart above, data here).

Update: The 11% June increase is the largest monthly percentage increase since the July 2000 gain of 11.85%, almost nine years ago, see First Trust Portfolio report here.


2 Comments:

At 7/27/2009 1:53 PM, Blogger 1 said...

"New-home sales soared in June from the previous month, the third increase in a row and supplying fresh evidence the housing market is beginning to recover from its long crisis"...

LOL!

Thanks to EXTORTED TAX DOLLARS...

ROFLMAO!

How many of these 'casas nuevas' will end up underwarter?

Considering the inability to understand basic economics in the Oval Office today could there be another Diversity Recession?

 
At 7/27/2009 8:22 PM, Anonymous Anonymous said...

The ratio of new home sales to existing home sales is near a record low. While the inventory of new homes has decllined a lot, the old "normal" inventory of six months of supply is no longer valid.

New home building permits are at the lowest level since 1980 despite positive population growth over the past 29 years.

The Architectural Billings Index has been below 50 for 18 months and more than half of architectural firms expect a decline in billings in the next six months.

 

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