New Residential Single Family Home Sales decreased 12.6% from December, with an annual sale rate of 284,000 new homes. This is in comparison to a seasonally adjusted revised annual rate of 325,000, revised from 329,000, new home sales for December 2010 and is an 18.6% drop in comparison to January's 2010 349,000 new home sales.
The January report does imply December's increase was just a bounce alone the bottom of the residential new home single family market. These numbers are seasonally adjusted, so odds on those trying to blame the weather are grasping at straws. Blame the jobs crisis and the glut of foreclosures on and off the market.
The supply of new homes is now at 7.9 months of inventory, which is an increase of of 9/10ths of a month from last month's inventory report.
Prices dropped as well, with the January median price being $230,600 and the average price was $260,300. For comparison, the median sales price of new houses sold in December 2010 was $235,000; the average sales price was $290,700.
December new home sales was revised to 15.7% increase from a 17.5% increase initially reported.
S&P and others are pointing to a double-dip plunge in home prices overall.
Freddie Mae and Freddie Mac just reported they expect home prices to decline through 2011.
Weather? Try that s@#t storm pummeling the U.S. middle class as the reason home sales and prices are continuing to decline.
U.S. mortgage and credit market conditions remained weak in 2010 primarily due to a continued weak labor market. Home prices decreased 4.1 percent nationwide during 2010, which included a 1.4 percent decrease in the fourth quarter of 2010, based on the company’s own index of its single-family credit guarantee portfolio. In addition, long-term interest rates declined by approximately 59 basis points during 2010, but increased by approximately 87 basis points during the fourth quarter of 2010.