New home inventory continues to drop while months of supply rises, demand is weak
Posted By:
Tom Sanderson
Date Posted:
Tuesday, November 30, 2010
4:17 PM
Seasonally adjusted new home inventory increased to 8.6 months of supply in October from 7.9 months in September. The absolute inventory of new homes continues to fall and is now at 202 thousand, the lowest level seen since the late 1960's. Any recovery in the rate of sales would quickly deplete the low absolute inventory level and lead to a significant increase in housing starts (and freight) but that does not appear likely in the near term. The vertical bars in the graphs represent recessions.
