New home sales up last month, but still 23 percent below last year

In April, new home sales increased about 7 percent. The inventory of new homes has fallen to a series low.

By , Guest blogger

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    This chart shows new single family home sales from 2003 through last month. New home sales rose slightly in April 2011, but they still haven't reached the level they were a year ago.
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Today, the U.S. Census Department released its monthly New Residential Home Sales Report for April showing a monthly increase with sales climbing 7.31% since March but still declining 23.10% below the level seen a year earlier to a historically low 323K SAAR units.

These results, while again strengthening a bit off of February's horrendous level still clearly indicates that the nation's housing markets are firmly entrenched in a double-dip and come fully in-line with the other pitiful housing data-points I have outlined in past weeks.

It's important to recognize that the inventory of new homes has now fallen to a new series low at 175K units, lowest level seen in in at least 47 years while the median number of months for sale remained elevated increasing to 8.8.

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The monthly supply declined to 6.5 months while the median selling price increased a notable 4.61% and the average selling price declined 0.59%.
The following chart show the extent of sales decline to date (click for full-larger version).

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