Before we conclude that the real estate market is getting better, let’s take a closer look at just released charts on new home sales.   Unfortunately, it isn’t a pretty picture.

June 2009 New Home Sales are Near a 27 Year Low

This chart from M Hanson Advisors shows that 36,000 new home sales were sold in June of 2009, the lowest level since the recession of 1982.   This figure looks even worse when we consider that there are nearly twice as many households now.

How Many Months did it Take to Find Buyers in 2009?

It took an average of 12 months to sell a new home in June 2009.  Notice that the number of days on the market has been rising since 2006 and is still in an upward trend.  Certainly not a bullish sign.  Thanks to Haver Analytics and ritholtz.com/blog for this chart.

Is Demand Back??  No, Builders Were Forced to Cut Prices in Order to Move Inventory.

Source: M Hanson Advisors

1 Year Snap Shot of New Home Sales versus Prices

The chart from M Hanson Advisors reveals that from June 2008 to June 2009, 20 percent fewer homes were sold…and at much lower prices.  

Even though recent news headlines conclude that the housing market appears to be improving, the charts tell a different story.  We were hoping for better news, but the bears take this round, too. 

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