Post by unlawflcombatnt on May 25, 2007 14:30:28 GMT -6
The overall housing market continues to decline. Both prices and sales are not declining while inventories are increasing. The combined home sales total (existing + new) declined -27,000 on an annualized basis. The combined price decline was -2.2% nationwide, comparing April 2006 to April 2007. The combined increase in home inventory (homes on the market) was +759,000 (+19%) since April 2006.
The breakdown is as follows.
The annualized rate of New Home Sales increased 16.2% in April, compared to the previous month. However, sales were down -10.6% compared to April 2006. Median New Home prices declined -10.6% from April 2006, from $257,000 down to $229,100 in April 2007. The inventory of New Homes on the market in April 2007 was 532,000, a decline of 26,000 from 558,000 in April 2006. The graph below from Briefing.com shows the year-over-year change in New Home Sales.
The graph below (from Briefing.com) shows the longer-term trend in New Home Prices.
The biggest effects on the home sales and prices come from Existing Home Sales. The annualized rate of Existing Home Sales decreased -2.6% from in April, compared to the previous month. Sales were also down 10.7% compared with April 2006. Existing Home prices declined -0.8% from April 2006, from $222,600 to $220,900 in April 2007. The inventory of Existing Homes on the market in April 2007 was 4.2 million, and increase of 785,000 from April 2006's total of 3.415 million. This is a year-over-year increase of 23%. The 1-month increase in inventories was a whopping 396,000 (+10.4%), from 3.806 million in March 2007 to 4.20 million in April 2007. This equates to an increase in "months'-worth of supply" to 8.4 months in April, compared to only a 7.4-month supply the previous month.
The housing market is clearly sinking. The only positive news was yesterday's annualized New Home Sales increase to 981 K annualized rate. However, this is still -10.6% less than the previous April. In addition, this sales increase was accompanied by an annualized decrease in prices of -10.6%. In fact, the -11.1% decline in New Home Prices was a new record. (One might conclude that it was the price reductions that actually caused the increase in April New Home Sales.) Total median home prices have declined for 9 straight months.
In summary, home prices are now declining, for both New and Existing homes. And this price decline will only accelerate with the rapidly increasing inventory (supply) of unsold homes.
The housing market has not "bottomed out." In fact, it's nowhere near the bottom at present.
The breakdown is as follows.
The annualized rate of New Home Sales increased 16.2% in April, compared to the previous month. However, sales were down -10.6% compared to April 2006. Median New Home prices declined -10.6% from April 2006, from $257,000 down to $229,100 in April 2007. The inventory of New Homes on the market in April 2007 was 532,000, a decline of 26,000 from 558,000 in April 2006. The graph below from Briefing.com shows the year-over-year change in New Home Sales.
The graph below (from Briefing.com) shows the longer-term trend in New Home Prices.
The biggest effects on the home sales and prices come from Existing Home Sales. The annualized rate of Existing Home Sales decreased -2.6% from in April, compared to the previous month. Sales were also down 10.7% compared with April 2006. Existing Home prices declined -0.8% from April 2006, from $222,600 to $220,900 in April 2007. The inventory of Existing Homes on the market in April 2007 was 4.2 million, and increase of 785,000 from April 2006's total of 3.415 million. This is a year-over-year increase of 23%. The 1-month increase in inventories was a whopping 396,000 (+10.4%), from 3.806 million in March 2007 to 4.20 million in April 2007. This equates to an increase in "months'-worth of supply" to 8.4 months in April, compared to only a 7.4-month supply the previous month.
The housing market is clearly sinking. The only positive news was yesterday's annualized New Home Sales increase to 981 K annualized rate. However, this is still -10.6% less than the previous April. In addition, this sales increase was accompanied by an annualized decrease in prices of -10.6%. In fact, the -11.1% decline in New Home Prices was a new record. (One might conclude that it was the price reductions that actually caused the increase in April New Home Sales.) Total median home prices have declined for 9 straight months.
In summary, home prices are now declining, for both New and Existing homes. And this price decline will only accelerate with the rapidly increasing inventory (supply) of unsold homes.
The housing market has not "bottomed out." In fact, it's nowhere near the bottom at present.