NEW RESIDENTIAL SALES IN MAY 2008 PRESS RELEASE

FOR IMMEDIATE RELEASE WEDNESDAY, JUNE 25, 2008 AT 10:00 A.M. EDT CB08-97 Erica Filipek or Raemeka Mayo Manufacturing and Construction Division (301) 763-5160 NEW RESIDENTIAL SALES IN MAY 2008 Sales of new one-family houses in May 2008 were at a seasonally adjusted annual rate of 512,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 2.5 percent (±13.7%)* below the revised April rate of 525,000 and is 40.3 percent (±6.9%) below the May 2007 estimate of 857,000. The median sales price of new houses sold in May 2008 was $231,000; the average sales price was $311,300. The seasonally adjusted estimate of new houses for sale at the end of May was 453,000. This represents a supply of 10.9 months at the current sales rate. New Residential Sales data for June 2008 will be released on Friday, July 25, 2008, at 10:00 A.M. EDT. http://www.census.gov/newhomesales Our Internet site is: http://www.census.gov/newhomesales EXPLANATORY NOTES These statistics are estimated from sample surveys. They are subject to sampling variability as well as nonsampling error including bias and variance from response, nonreporting, and undercoverage. Estimated average relative standard errors of the preliminary data are shown in the tables. Whenever a statement such as “2.5 percent (±3.2%) above” appears in the text, this indicates the range (-0.7 to +5.7 percent) in which the actual percent change is likely to have occurred. All ranges given for percent changes are 90-percent confidence intervals and account only for sampling variability. If a range does not contain zero, the change is statistically significant. If it does contain zero, the change is not statistically significant; that is, it is uncertain whether there was an increase or decrease. The same policies apply to the confidence intervals for percent changes shown in the tables. Changes in seasonally adjusted statistics often show irregular movement. It takes 5 months to establish a trend for new houses sold. Preliminary new home sales figures are subject to revision due to the survey methodology and definitions used. The survey is primarily based on a sample of houses selected from building permits. Since a “sale” is defined as a deposit taken or sales agreement signed, this can occur prior to a permit being issued. An estimate of these prior sales is included in the sales figure. On average, the preliminary seasonally adjusted estimate of total sales is revised about 4 percent. Changes in sales price data reflect changes in the distribution of houses by region, size, etc., as well as changes in the prices of houses with identical characteristics. Explanations of confidence intervals and sampling variability can be found on our web site listed above. * 90% confidence interval includes zero. The Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero. Table 1. New Houses Sold and For Sale [Thousands of houses. Detail may not add to total because of rounding] Sold during period 1 Period United States Northeast Midwest South West United States For sale at end of period Northeast Midwest Months' South West supply2 Median sales price ($) Average sales price ($) Seasonally adjusted 2007: May June 857 793 83 64 142 114 432 440 200 175 545 543 7.8 8.3 July August September 796 702 694 48 59 63 105 122 104 430 365 353 213 156 174 539 533 528 8.3 9.2 9.4 October November December 723 629 600 65 55 56 128 86 74 379 339 335 151 149 135 513 502 494 8.6 9.5 9.8 2008: January February March r r r 597 572 501 55 39 26 77 77 65 318 314 288 147 142 122 484 477 471 9.8 9.7 11.4 April 525 38 78 280 129 461 10.7 Mayp Average RSE (%) 3 512 8 35 21 82 18 281 11 114 12 453 4 10.9 7 Percent Change: May 2008 from April 2008 90% Confidence Interval 4 -2.5% ± 13.7 -40.3% ± 6.9 -7.9% ± 32.5 -57.8% ± 21.8 5.1% ± 46.6 -42.3% ± 14.1 0.4% ± 25.2 -35.0% ± 14.1 -11.6% ± 22.0 -43.0% ± 11.7 -1.7% ± 0.9 -16.9% ± 3.0 Not seasonally adjusted 1.9% ± 13.2 39.7% ± 16.9 May 2008 from May 2007 90% Confidence Interval 4 2006: 2007: RSE (%) 2007: Year to Date 2008: Year to Date RSE (%) 1,051 776 3 375 236 5 63 65 10 32 16 11 161 118 9 58 33 12 559 411 4 195 128 6 267 181 5 90 59 6 537 496 3 (X) (X) (X) (X) (X) 54 48 12 (X) (X) (X) (X) (X) 97 79 8 (X) (X) (X) (X) (X) 267 248 5 (X) (X) (X) (X) (X) 119 121 7 (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) 246,500 247,900 3 (X) (X) (X) (X) (X) 305,900 313,600 3 (X) (X) (X) (X) (X) Year to Date Percent Change 5 90% Confidence Interval 4 2007: May June -37.3% ± 4.0 79 73 -50.9% ± 8.7 8 6 -43.5% ± 8.1 14 11 -34.4% ± 6.4 39 41 -34.6% ± 6.9 19 15 544 543 52 51 85 85 276 273 131 134 6.9 7.5 245,000 235,500 309,700 306,500 July August September 68 60 53 4 5 5 9 11 8 36 31 27 18 13 14 538 538 527 52 52 50 83 82 80 271 272 270 131 132 127 8.0 8.9 9.9 246,200 236,500 240,300 307,100 301,300 292,200 October November December 57 45 44 5 4 4 10 6 5 30 25 26 12 10 8 518 508 496 49 48 48 79 79 79 264 257 248 127 124 121 9.0 11.2 11.4 234,300 249,100 227,700 310,100 316,800 284,400 2008: January February March r r r 44 48 48 3 3 2 5 6 6 24 26 28 11 12 12 488 475 465 46 45 45 78 76 75 246 241 236 117 113 110 11.1 9.9 9.6 232,400 245,300 227,800 284,600 301,200 286,800 April 47 4 7 24 12 459 44 73 237 105 9.8 243,500 321,200 Mayp Average RSE (%)3 48 8 3 21 8 18 26 11 11 12 450 4 43 14 72 10 234 4 101 8 9.4 7 231,000 4 311,300 5 p Preliminary. r Revised. RSE Relative standard error. X Not applicable. 2 Z Less than 0.5 percent. 3 1 4 Seasonally adjusted houses sold are published at annual rates. Ratio of houses for sale to houses sold. 5 Average RSE for the latest 6-month period. See the Explanatory Notes in the accompanying text for an explanation of 90% confidence intervals. Computed using unrounded data. Note: The sales price includes the land. Table 2. New Houses Sold, by Sales Price [Thousands of houses. Components may not add to total because of rounding. Percents computed from unrounded figures] Under Total $150,000 $150,000 to $199,999 $200,000 to $299,999 $300,000 to $399,999 1 Period $400,000 to $499,999 $500,000 to $749,999 $750,000 and over Number of houses 2006: 2007: RSE (%) 2007: May June 1,051 776 3 162 106 10 208 162 5 300 227 5 174 121 7 84 65 9 80 62 8 43 32 13 79 73 10 10 17 18 24 20 13 10 6 5 6 6 3 3 July August September 68 60 53 10 9 8 13 14 10 22 18 18 10 8 7 4 5 4 6 4 4 3 2 2 October November December 57 45 44 9 7 6 14 9 9 13 13 14 9 7 6 5 4 4 5 4 2 2 2 1 2008: January February March r r r 44 48 48 8 7 7 9 9 11 15 16 17 5 8 7 4 3 2 2 3 3 1 2 2 April 47 5 10 14 9 3 5 2 Mayp Average RSE (%)2 48 10 10 15 4 4 3 3 8 19 15 13 17 23 25 32 Percent distribution 2006: 2007: 100 100 15 14 20 21 29 29 17 16 8 8 8 8 4 4 2007: May June 100 100 12 14 21 25 30 28 17 14 8 7 7 8 4 4 July August September 100 100 100 15 15 15 19 23 19 32 29 34 15 13 14 6 9 8 9 7 7 4 4 3 October November December 100 100 100 16 14 15 25 21 21 23 28 33 16 16 14 8 9 9 8 8 6 4 4 2 2008: January February March r r r 100 100 100 18 14 14 20 19 24 33 33 34 11 16 14 9 7 5 5 7 6 3 4 3 April 100 11 21 29 18 7 10 4 Mayp p r 100 20 20 31 8 9 6 6 Preliminary. Revised. RSE Relative standard error. X Not applicable. Z Less than 0.5 percent. 1 2 Houses for which sales price was not reported have been distributed proportionally to those for which sales price was reported. Average RSE for the latest 6-month period. Note: The sales price includes the land. Table 3. New Houses Sold and For Sale by Stage of Construction and Median Number of Months on Sales Market [Thousands of houses. Detail may not add to total because of rounding] Sold during period Period Total 2006: 2007: RSE (%) 2007: May June 1,051 776 3 79 73 For sale at end of period Not started 78 69 5 84 80 Median months Completed 174 198 6 182 181 Not started 346 196 6 20 18 Under construction 368 255 5 27 26 Completed 337 325 5 32 29 Total 537 496 3 544 543 Under construction 285 228 4 278 281 for sale1 4.3 6.2 8 5.6 5.8 July August September 68 60 53 15 14 11 23 20 17 30 27 26 538 538 527 77 80 76 280 270 261 181 187 191 6.0 5.7 5.8 October November December 57 45 44 12 9 10 18 12 11 27 25 22 518 508 496 73 73 69 253 241 228 192 194 198 5.9 6.0 6.2 2008: January February March r r r 44 48 48 10 11 11 12 11 12 22 25 25 488 475 465 69 68 66 220 214 208 199 194 191 6.7 7.1 7.5 April 47 12 15 21 459 66 206 187 7.9 Mayp Average RSE (%) 2 48 8 14 8 15 10 18 10 450 4 68 9 199 5 182 5 8.5 5 p Preliminary. r Revised. RSE Relative standard error. Z Less than 0.5 percent. 1 2 Median number of months for sale since completion. Average RSE for the latest 6-month period.