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New home sales (or perhaps better phrased sale of newly constructed homes) slid for the 4th month in 2007 with a 1.6% decrease in the number of new homes sold in May. While this may seem like a very small decrease in number of units sold, it follows the April report of a substantial 12.5% increase in the number of new homes sold. Thus, May reflects a huge pendulum swing back in the wrong direction for the homebuilders.

The one thing the real estate industry hates to see more than a decline is to have volatility added to that decline.

Bright spot or silver lining for those of us living here in the Midwest, i.e. Cincinnati and Dayton markets… sales in the midwest were up some 30.8%. Also, another positive comment to come out of this month’s report is that the supply of newly constructed homes currently completed and available for sale dipped 1.1%. This is rather mixed news though as the longer time it is taking to sell inventory is expected to add more homes to the current supply faster than the supply of homes can be reduced.

Here is the article from the Cincinnati Enquirer in Adobe PDF format:

New Home Sales Fall in May for 4th Month (in 2007)

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