New Home Sales at Record Low

FOR IMMEDIATE RELEASE
CONTACT: Paul Lopez
202-266-8409
plopez@nahb.org
www.nahb.org

New-Homes Sales Fall to Record Low in July

WASHINGTON, Aug. 25 – Sales of newly built, single-family homes declined
12.4 percent to a seasonally adjusted annual rate of 276,000 units in July,
according to data released by the U.S. Commerce Department today. This was
the lowest sales rate for new homes on record.

“Today’s report, though not unexpected, is disappointing in view of the
improvement in sales activity that we saw in June,” said Bob Jones, chairman
of the National Association of Home Builders (NAHB) and a home builder from
Bloomfield Hills, Mich. “Potential home buyers have become very hesitant due
to uncertainty about the economy and job market, and are putting off the
decision to buy until they feel more confident.”

“The slow pace of economic recovery and worries about job security are
weighing heavily on the minds of potential home buyers right now,” agreed
NAHB Chief Economist David Crowe. “As a result, the housing market is
clearly in a holding pattern. That said, NAHB does not project that a
double-dip recession is in the cards, and we are looking for employment
gains later this year to help bolster sales activity moving forward.”

Sales of new homes fell across every region in July, with a 13.9 percent
decline registered in the Northeast, an 8.3 percent decline in the Midwest,
an 8.7 percent decline in the South and a 25.4 percent decline in the West.

Meanwhile, the latest figures indicated that builders are keeping a tight
rein on the inventory of new homes for sale. That inventory remained
unchanged at 210,000 units in July. However, due to the slower pace of sales
activity, the month’s supply of homes rose to 9.1 from 8.0 in the previous
month.

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ABOUT NAHB: The National Association of Home Builders is a Washington-based
trade association representing more than 175,000 members involved in home
building, remodeling, multifamily construction, property management,
subcontracting, design, housing finance, building product manufacturing and
other aspects of residential and light commercial construction. NAHB is
affiliated with 800 state and local home builders associations around the
country.