Best Financial Markets Analysis Article Sales of new single-family homes fell 2.3% to an annual rate of 295,000 in August, which marks the sixth monthly decline in the first eight months of the year and the level of sales remains close to the record low of 278,000 seen precisely a year ago. Sales of new homes fell in the Northeast (-13.6%), West (-6.3%), and South (-2.4%) but rose in the Midwest (+8.2%) during August.

The median price of a new single-family home dropped to $209,100 in August from $228,900 in the prior month; the year-to-year decline stands at 7.7%. There was a 6.6-month supply of unsold new homes in the market place compared with the historical average of 6.2-months.

The combined picture of housing starts and sales indicates that conditions have improved slightly in terms of reduced inventories of both existing and new homes, but foreclosures continue to hold down home prices and construction of new homes remains close to historical lows.

Asha Bangalore — Senior Vice President and Economist

http://www.northerntrust.com

Asha Bangalore is Vice President and Economist at The Northern Trust Company, Chicago. Prior to joining the bank in 1994, she was Consultant to savings and loan institutions and commercial banks at Financial & Economic Strategies Corporation, Chicago.

The opinions expressed herein are those of the author and do not necessarily represent the views of The Northern Trust Company. The Northern Trust Company does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions.

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