July 2010 – New One Family Home Sales at All Time Low; ZERO Units Over 750K Sold!!

posted by Nima

August 27, 2010 · Posted in General Economics 

Two days ago the data on new home sales was published for July. What caught my (and probably everybody else’s) eye was the all time low in new one family home sales, at 276,000:

And how’s the high end market doing? See Breakfast with Dave:

The high-end market, in particular, is under tremendous pressure. In fact, it is becoming non-existent. Guess how many homes prices above $750k managed to sell in July. Answer — zero, nada, rien; and for the second month in a row. Only 1,000 units priced above 500,000 moved last month. That’s it!

This is really as bad as it gets. Mish sums it up succinctly:

Inventory is up, sales are down, sentiment has soured, and tax credits have gone poof.

Prices will follow.

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4 Responses to “July 2010 – New One Family Home Sales at All Time Low; ZERO Units Over 750K Sold!!”

  1. Avery J. Knapp Jr. on September 10th, 2010 8:31 am

    I couldn’t believe it, so I had my brother look up in the Multiple Listing Service MLS:

    According to the MLS (multiple listing service), there were 39 New homes that closed escrow above $750,000 in July of 2010 in LA County. Not all sales are listed on the MLS so it is probably more than 39.

    FYI, Here’s some other years:

    2010 – 39 Homes
    2009 – 36 Homes
    2008 – 35 Homes
    2007 – 95 Homes
    2006 – 85 Homes
    2005 – 50 Homes
    2004 – 27 Homes
    2003 – 21 Homes
    2002 – 12 Homes

    What gives?

  2. Avery J. Knapp Jr. on September 10th, 2010 8:32 am

    I was incredulous about the 0 new home sales above $750k in July, so I had my brother look it up in MLS:

    According to the MLS (multiple listing service), there were 39 New homes that closed escrow above $750,000 in July of 2010 in LA County. Not all sales are listed on the MLS so it is probably more than 39.

    FYI, Here’s some other years:

    2010 – 39 Homes
    2009 – 36 Homes
    2008 – 35 Homes
    2007 – 95 Homes
    2006 – 85 Homes
    2005 – 50 Homes
    2004 – 27 Homes
    2003 – 21 Homes
    2002 – 12 Homes

    Where’s the error?

  3. Nima on September 10th, 2010 7:26 pm

    this is the release that this post is based upon:
    http://www.census.gov/const/www/newressalesindex.html

    the MLS data source you are using is probably a lot more accurate and detailed.

    the cesnsus just puts a Z for less than 500 or 0.05% of the overall data set. that may lead to some differences without changing the general message that homesales are headed back into the shitter …

  4. scott t on September 11th, 2010 12:02 am

    does anything give?? if its more than 39?

    if its 40 could a a few large neighborhoods have come to near completion and a slowing down of 750k houses?? a land crunch for 750k homes? could a market saturationn occurennce on new 750k homes be in effect…more 6ook condos on the way??

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