Sales of new single-family homes fell in August by 2.3% and are poised to reach new lows for the third consecutive year.
According to data from U.S. Census Bureau and HUD, new home sales declined in August from a annual rate of 302,000 in July to 295,000. Although the pace exceeded that of August 2010's rate of 278,000, new home sales are projected to reach a new low in 2011. This would be the sixth consecutive year that new home sales have declined since peaking in 2005 at 1.2 million units. Projected to reach and 303,000 units in 2011, a drop from 323,000 in 2010, the current year is headed toward the third consecutive year that levels have hit a new low since the Census Bureau began tracking new home sales in 1963.
The report indicated that the median sales price of new homes sold in August was $209,100 with an average sales price of $246,000. At the current rate, the Census Bureau estimates a current inventory supply of 6.6 months.