New Home Sales Depression: Purchases Down 48% YTD

In yet another sign that there is no end in sight to the nation's housing depression, new home sales fell to a record low annualized rate of 309,000 units in January with the inventory measure swelling to 13.3 months. According to new figures released by the Commerce Department, single-family home sales fell 48.2% compared to the same month in 2008, and 10.2% compared to December. Based on the current sales pace, there is a 13.3 month supply of new homes on the market, the highest measure ever recorded. The median sales price fell to $201,100 in January, a 9.9% drop from December. The poor sales showing comes with the national unemployment rate climbing toward 8% but with mortgages rates — for those with good credit — hovering above their historic lows. Meanwhile, the Federal Reserve this week released figures showing that the nation's commercial banks have an overall delinquency rate of 6.92% on their residential holdings, a record. A year ago the ratio was less than half: 3.31%.