Sales of new homes dropped 33% from just one month ago. There is no bigger sign than the data released today that the housing tax credit pulled forward demand as I said would happen last year.
The drop in new home sales is shocking
- New Home Sales for May 2010 : 300K Vs. 410K expected (-33% M/M)
- April new home sales revised lower : 504K to 446K
- Median price $200.9K (new record low since Dec 2003)
- Months supply: 8.5 vs. 5.8 in April
- REGIONS: Northeast sales -33.3%; Midwest sales -23.9%, South sales -25.4%, West Sales -53.2%
With the ‘months of supply’ going up this means only one thing… further declines in housing prices still to come.

