The Commerce Department reported that sales of new single-family homes jumped by 16.2 percent in April to a seasonally adjusted annual rate of 981,000 units.

However, the median price of a new home sold last month fell to $229,100, a record 11.1 percent decline from the previous month.

From ASP: $299,100

To put this in perspective:

April 2006: 1,198,000 with ASP: $298,300, median price: $238,500

April 2005: 1,316,000 with ASP: $283,500, median price: $230,800

Yoy (4/06 - 4/07): 18.1% decline in volume, 2.7% gain in ASP, 4.1% decline in median price

Yo2y (4/05 - 4/07): 25.5% decline in volume, 5.5% gain in ASP, 0.7% decline in median price

While it might seem that the 4/07 decreasing median would reflect even sales across the board, I would argue that this actually confirms the ongoing trend of higher priced houses selling, but the low end of the market essentially disappearing.

New home sellers/builders must get rid of inventory as they don't have any other utility for these houses, so clearly they are 'fire sale'ing them.

It would be interesting to see if there were also significant concessions which further impacted the actual sale price.

I would bet money on that...

Just for grins:

April 2003: 1,028,000, ASP: $235,100, median: $185,100

April 2001: 894,000, ASP: $199,700, median: $165,600

April 2000: 909,000, ASP: $208,000, median: $161,400

Any questions on whether mean reversion has begun?

Assuming 3% inflation from 2001 onward (probably conservative w/ regards to materials costs), this would mean approx. ASP: $238,500 and median $197,700 vs. the 2001 numbers.

Vs. 2003 numbers: approx. ASP: $264,600, median: $208,300