New Home Sales Continue Drifting Near All-Time Lows

Sales of new single-family homes continue to drag along the bottom of their all-time range.  In the most recent estimate released jointly by the Census Bureau and HUD, sales fell 2.3 percent to an annual rate of 295k (seasonally adjusted).  Despite the amount of New Homes on market dropping to an all-time low of 162,000, the downtick in sales was enough to nudge months of supply slightly higher from 6.5 to 6.6 (months of supply have been either 6.5 or 6.6 since April).

Prices also declined, with the median price falling from $228k to $209k, it's lowest since October 2010.  Average prices effectively matched their January 2009 lows, falling from $269k to $246k.  With the exception of January 2009, you'd have to go back to October 2003 to find a lower average price.