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The Commerce Department has reported that home sales dropped again in February. The report claimed that the sales fell 3.9 percent for the month and showed a surplus of inventory on the market that would take over 8 months to sell.

In previous posts I have had folks question these numbers because of the standard deviation on the reports are so broad that they could be 5 percent in either direction. If anyone has that information on the commerce report let me know and I will add it to this post.

The Commerce Department reported Monday that sales of new single-family homes fell by 3.9 percent last month to a seasonally adjusted annual rate of 848,000, the slowest sales pace in nearly seven years. All regions of the country except the West experienced weakness last month.

The February decline followed an even larger 15.8 percent drop in sales in January, which had been the largest one-month plunge in 13 years. The back-to-back declines provided evidence that the housing market is continuing to struggle with lagging demand and a glut of unsold homes.

The weakness in sales pushed the median price of a new home down to $250,000 in February, a drop of 0.3 percent from a year ago. It marked the second straight month that the median price fell compared with the same period a year ago. The median is the point where half the homes sold for more and half for less.

Related posts:

1. Existing Home Sales Drop 8.4 Percent Nationally in March 2007
2. New Home Sales Down 22 Percent From Last Year - Dow Down 300 Points
3. New Home Sales Fall 11.3% from October
4. May 2007 Home Sales Figures Show Tough Real Estate Market Nationwide
5. Existing Single-Family Home Sales Drop 2.2 Percent In December - 13 Percent For Year