Sales of new single-family houses in March 2010 were at a seasonally adjusted annual rate of 411,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 26.9 percent (±21.1%) above the revised February rate of 324,000 and is 23.8 percent (±18.7%) above the March 2009 estimate of 332,000. That was the headline.
This is the news: The average price of new homes sold in March was $214,000. The average price of homes for sale at the end of March was $228,000. And the supply of homes is only 6.7 months, which means many buyers can hold out until they get close to their asking prices. The 6.7% is the lowest number of months of inventory in two years. The number of months of inventory in March 2009 was 11.3%, so the improvement is substantial.
The March 2009 chart, provided by housing and economics blog Calculated Risk, shows just how badly the market had deteriorated at the trough of the recession. It is remarkable how quickly the picture is starting to look like the 2008 numbers.
And the extent to which inventory has returned to levels not seen since the early 1970s.
This may be the beginning of one of the greatest housing market recoveries in history, particularly if mortgage rates are under 5% and unemployment figures begin to drop.
Douglas A. McIntyre
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