New Home Sales data is in.
The New Home Sales indicator is typically viewed as a more real time indicator of the housing market, due to the fact that new sales are logged when contracts are signed, unlike existing home sales, which tends to lag a few months (looking back in time).
New Home Sales were in at 1222K, under analysts estimates of 1250K. Also interesting is the fact that the September 2005 numbers were approximately 0.1% lower than September 2004.
Some other interesting tidbits, the median home price fell 5.7% this month, to $215,700, and inventory of new homes is at an all time high of 493,000 units. With prices falling, and inventory at an all time high, it’s hard to see this boom continuing much longer.
Caveat Emptor,
Grim
“New home sales rose 2.1% in September, but from a downwardly-revised August figure (August was revised down 3.2%, so the new September sales rate of 1.22 million is below the unrevised August figure). Furthermore, the inventory/sales ratio was revised up to 4.9 months, the highest level since 1996. We have found this to be a useful leading indicator of the pace of residential investment, so this implies that some slowing lies ahead.” – Bill Dudley @ Goldman Sachs
Grim: I think it is over too. On another note the amount of inventory in my little zip code has explode, in just this past week * new listings in less than a week. More homes for sale now than IN Spring?Summer. They have joined other homes that are just sitting some for seven or eight months, most others with significant price reductions.
On new listing dropped its aking price 140K, two days after being listed, an I am seeing many other reductions from a s little as 5k to as much as 50K, and still the houses sit.
Sorry shoul read 8 new listings in less than a week.