U.S. New Home Sales Plummet 16.9% in February; Worst Single Monthly Decline Since 1962

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According to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family houses in February 2011 were at a seasonally adjusted annual rate of 250,000.

This is 16.9 percent (±19.1%) below the revised January rate of 301,000 and is 28.0 percent (±14.8%) below the February 2010 estimate of 347,000. This is the single biggest decline since the Kennedy administration in the 1960's.

The median sales price of new houses sold in February 2011 was $202,100; the average sales price was

$246,000. The seasonally adjusted estimate of new houses for sale at the end of February was 186,000. This represents a supply of 8.9 months at the current sales rate.

These numbers are based on signed contracts, not actual closings. Therefore these numbers are a dismal forward looking indicator of the upcoming spring selling season.

Many are now pointing to this report as a clear sign that the U.S. housing market is now truly in a 'double-dip'.

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