As a companion to yesterday’s piece, today we’ll look at the new homes market.
Total sales have dropped from 396K in October 2009 down to 283K in October 2010.
Again, total sales only tell half the story:
If you take the 2009 average price of $270,900 and adjust it to the 3rd quarter 2010 price index vs. the 3rd quarter 2009 price index, you end up with an average sale price of $267,453.
Therefore, the total new homes market has dropped from $107.28 billion in October 2009 down to $75.69 billion in October 2010, a $31.59 billion (29.4%) drop in total value in a year.