July New Home Sales down for Fourth Straight Month
This year’s total may be the lowest on records that go back to 1963.
Palm Coast, FL – August 23, 2011 – Sales of new single-family houses in July 2011 were at a seasonally adjusted annual rate of 298,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.7 percent (±12.9%)* below the revised June rate of 300,000, but is 6.8 percent (±13.5%)* above the July 2010 estimate of 279,000.
The median sales price of new houses sold in July 2011 was $222,000; the average sales price was $272,300. The seasonally adjusted estimate of new houses for sale at the end of July was 165,000. This represents a supply of 6.6 months at the current sales rate.
New home sales and new home construction are being held back by overly strict lending and appraisal standards than by an underlying weakness in demand, according to builders with whom GoToby.com has spoken. New home sales in 2012 are likely to come in at less than half the 700,000 units many economists peg as a normal level.
The National Association of Homebuilders estimates that the construction of each new home creates three new jobs and $90,000 in new taxes.
The dearth of new housing starts magnifies the effect of a steadily decreasing inventory of existing homes for sale.
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