New homs sales rose 11.1 percent in March according to data released by the Census Bureau yesterday. But the 300,000 sales were nearly 22 percent lower than the 384,00 new homes sold in March of last year. One key factor to consider while looking at new homes sales in this economic climate is the availability of less expensive existing homes, including foreclosed homes. Calculated Risk shares the below graph. Note the growth of the "Distressing Gap"--the difference between existing home sales and new home sales--over the last two years.
Calculated Risk provides more analysis (with graphs) of the new home sales data here and here.
Posted
04-26-2011 9:21 AM
by
Graham Griffith