Post by unlawflcombatnt on Apr 26, 2006 19:56:45 GMT -6
March's New Home Sales increased to an annual rate of 1.213 million from February's 1.066 annual rate. This 14% increase largely offsets the 16% decline over the previous 2 months. However, March's rate is still 13% below July's peak of 1.371 million/year. It still marks a decline in the annual sales rate from the end of last year when it was 1.266 million/year.
New Home prices also declined. The current annual price change is -2.2%. New Home inventories declined to 5.5 months worth from February's peak of 6.3 months worth. However, there is still an overall trend toward increasing inventories. March inventories are still higher than January's 5.3 months worth, December's 4.8 months, November's 4.9 months, and October's 4.5 months.
It does appear that the steady decline in New Home Sales took a break this month. However declines, however, have continued uninterrupted. March's annual price appreciation rate was -2.2%, down from +1.1% in February, and down from +7.4% in January.
However, the published numbers for March are deceptive. Further review of the New Home Sales numbers are far less optimistic. March's New Home Completions totaled 169,800. March's Housing Starts totaled 163,000. Total New Home Sales were only 119,000. Thus the supply is still increasing faster than the demand. In fact, the supply of New Homes available increased 50,000 more than the number sold in March. The future supply, indicated by Housing Starts, increased 44,000 more than homes sold. As predicted from an increase in supply greater demand, prices declined 2.2% year-over-year.
The year-over-year decline in price is also an understatement of current conditions. March's median new home price declined to $224,200 from February's $239,900. This is a 1-month decrease in price of $15,700, or -7%. March's price also marks a decline of $19,000, or -8.8%, since October's peak price of $ 243,900.
Though the calculated surplus in monthly supply of homes decreased, the actual number of homes available increased over the previous month. There were 553,000 home for sale at the end of March. This is an increase of 17,000 from February's 536,000. Homes are still being built in excess to the number being sold.
New Home prices also declined. The current annual price change is -2.2%. New Home inventories declined to 5.5 months worth from February's peak of 6.3 months worth. However, there is still an overall trend toward increasing inventories. March inventories are still higher than January's 5.3 months worth, December's 4.8 months, November's 4.9 months, and October's 4.5 months.
It does appear that the steady decline in New Home Sales took a break this month. However declines, however, have continued uninterrupted. March's annual price appreciation rate was -2.2%, down from +1.1% in February, and down from +7.4% in January.
However, the published numbers for March are deceptive. Further review of the New Home Sales numbers are far less optimistic. March's New Home Completions totaled 169,800. March's Housing Starts totaled 163,000. Total New Home Sales were only 119,000. Thus the supply is still increasing faster than the demand. In fact, the supply of New Homes available increased 50,000 more than the number sold in March. The future supply, indicated by Housing Starts, increased 44,000 more than homes sold. As predicted from an increase in supply greater demand, prices declined 2.2% year-over-year.
The year-over-year decline in price is also an understatement of current conditions. March's median new home price declined to $224,200 from February's $239,900. This is a 1-month decrease in price of $15,700, or -7%. March's price also marks a decline of $19,000, or -8.8%, since October's peak price of $ 243,900.
Though the calculated surplus in monthly supply of homes decreased, the actual number of homes available increased over the previous month. There were 553,000 home for sale at the end of March. This is an increase of 17,000 from February's 536,000. Homes are still being built in excess to the number being sold.