The U.S. Census Bureau and the Department of HUD announced today that the new single family home sales for August 2008 were at a seasonally adjusted annual rate of 460,000. This was 11.5% less than July 2008 and 34.5% less than August 2007. Economists were expecting that sales would fall to 510,000.
Months Supply reached 10.9 in August, up from 10.3 in July. Months Supply is the amount of time it would take to completely sell the new homes inventory if no new homes were built and if the sales pace continued as is. Supply and Demand is balanced at 6 months. The current level will continue to put pressure on home prices both for new homes and existing homes.
New home sales are still weakening and now we are entering the slow months for new home sales. The $700 billion bailout isn't helping the psychology of buyers either.
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