New Home Sales Depressed but Inventory Low

Sales of new single-family houses in August 2011 were at a seasonally adjusted annual rate of 295,000, according to
estimates released jointly today by the U.S. Census Bureau and the Deparhttp://www.blogger.com/img/blank.giftment of Housing and Urban Development.
This is 2.3 percent below the revised July rate of 302,000, but is 6.1 percent above the August 2010 estimate of 278,000.

The median sales price of new houses sold in August 2011 was $209,100, down by more than 9% from the previous month as builders slash prices to compete with discounted foreclosures; the average sales price was $246,000. The seasonally adjusted estimate of new houses for sale at the end of August was 162,000. This represents a supply of 6.6 months at the current sales rate. Should sales pick up, this inventory could be quickly reduced, thereby creating more demand for new product.

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