Industry News

New home sales drop 7%

Inventory levels climb from a year ago, report finds

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The rate of new single-family home sales in March was about 7.2 percent below the March 2005 estimate, while the supply of for-sale inventory was up about 31 percent, the U.S. Census Bureau and the Department of Housing and Urban Development announced today. The agencies reported that the seasonally adjusted annual rate of new single-family home sales was 1.21 million in March 2006, a gain of 13.8 percent since February but a decline from 1.31 million in March 2005. The seasonally adjusted annual rate is a projection of a monthly sales total over a 12-month period, adjusted for seasonal fluctuations in sales activity. The median sales price of new houses sold in March 2006 was $224,200, down 2.3 percent from the median sales price in March 2005; and the average sales price was $279,100, which is 3.8 percent below the March 2005 average. The seasonally adjusted estimate of new houses for sale at the end of March was 555,000. This represents a supply of 5.5 months at the current sales ...