New Home Prices Down YOY, Record Inventory
The Census Bureau has new home sales numbers out. "Sales of new one-family houses in March 2006 were at a seasonally adjusted annual rate of 1,213,000. This is 13.8 percent above the revised February rate of 1,066,000, but is 7.2 percent below the March 2005 estimate of 1,307,000. The median sales price of new houses sold in March 2006 was $224,200."
Median Prices in $:
03.05..229,3000
9.05..240,400
10.05..243,900
11.05..237,900
12.05..238,600
01.06..239,600
02.06..239,900
03.06..224,200
Inventory for sale at end of period:
03.05..441,000
07.05..459,000
08.05..477,000
09.05..491,000
10.05..492,000
11.05..508,000
12.05..515,000
01.06..526,000
02.06..536,000
03.06..553,000
"The new home sales report showed signs the housing market has slowed from peak levels. The median home price slipped 2.2 percent from a year earlier to $224,200, the first year-over-year decline since December 2003, the Commerce Department said."
"The number of unsold homes fell to 5.5 months' worth at the current sales pace from 6.3 months in February. The number of homes for sale at the end of March was a record 555,000. 'I am worried about the potential for a trailing-down process that gains some momentum' in the housing market, David Seiders, chief economist of the National Association of Home Builders, said. 'I hope the Fed doesn't overshoot' on raising interest rates."
"The strength in home sales, if it persists, could keep the economy growing faster than the Federal Reserve wants and could lead to higher interest rates than now expected. The government cautions, however, that its housing data are subject to large sampling and other statistical errors. The margin of error is so large, in fact, that the government cannot say with confidence that sales rose at all in March."
A comparison. "New home sales increased in March to a seasonally adjusted annual rate of 1.213 million. The pace of new-home construction continued its orderly cooldown in March. Total housing starts dropped to a seasonally adjusted annual rate of 1.960 million units in March, according to figures released by the Commerce Department."
The Dallas News. "William Quinn has been managing American Airlines Inc.'s pension funds since 1980. He now manages $48 billion in assets. '(The) problem is that we are building more houses than we need on a national level. Housing has the potential to slow down the economy as people realize this,' Quinn said."