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 SALES SLIP, RECORD LOW INVENTORY New Home Sales  Thursday June 23, 2011 Record High: 1389k (07/05) Percent Change from Record High: -77.0% New home sales fell 2.1% in May to an annualized pace of 319k, which was a bit better than an expected pace of 310k. Moreover , even with the decline last mont h, new home sales are 13.5% above their year ago level in May 2010. Nevertheless, at just over a 300k annual rate in the past three months, new home sales remain at an exceptionally weak level. Regionally, sales were mixed with a large 26.7% decline in the Northeast, a modest decline of 3.5% in the West and a gain of 2.4% in the South. Sales in the Midwest were unchanged on the month. The inventory of new home s available for sale fell 3. 5% in May to a record low level of 166k which represents a 6.2 month-supply at the current sale pace. Such low inventory levels will support pricing and t he potential for new residential construction when demand picks up. Home prices did fall from one year ago; median sales prices were dow n 3.4% from May 2010 to $222,600 as average prices declined 5.2% to $266,400. New home sales remain quite slow and continue to face competition from the large number of distressed properties on the market. Demand remains constrained by slow job growth, tight credit and rising energy prices. It will be a rebound in the broader economy that would restore demand drivers and get homebuilding and new home sales back on track . THOUSANDS OF UNITS Forecast: 305k Monthly Average for Consensus*: 310k Three Six Twelve Five Ten Actual: 319k May-11 Apr-11 Mar-11 Feb-11 Month Month Month 2010 2009 Year Year New Home Sales 319 326 306 281 317 312 302 321 374 599 845 (percent change) -2.1 6.5 8.9 -9.4 -14.1 -22.4 Northeast 22 30 27 19 26 26 28 31 31 45 60 (percent change) -26.7 11.1 42.1 -42.4 -2.7 -11.1 Midwest 42 42 39 31 41 39 40 45 54 89 140 (percent change) 0.0 7.7 25.8 -26.2 -17.7 -21.8 South 172 168 168 170 169 168 165 173 202 321 421 (percent change) 2.4 0.0 -1.2 4.3 -14.5 -23.8 West 83 86 72 61 80 80 69 74 87 143 224 (percent change) -3.5 19.4 18.0 -15.3 -15.3 -22.9 Inventory 166 172 177 182 172 179 192 190 234 362 376 Months of Supply 6.2 6.3 6.9 7.8 6.5 6.9 7.7 8.0 9.0 8.5 6.3 Median Sales Price ($000) 222.6 217.0 219.5 220.1 219.7 226.8 222.5 221.2 214.5 230.6 215.4 (year-on-yea r % change) -3.4 4.2 -2.4 -0.8 -0.7 2.6 2.2 3.1 -6.9 Average Sales Price ($000) 266.4 265.0 257.3 262.8 262.9 269.8 267.0 271.5 268.2 288.2 268.2 (year-on-year % change) -5.2 -2.0 -2.1 -7.5 -3.2 -2.5 -2.7 1.2 -7.2 Source: Bureau of the Census, Department of Commerce Via Haver Analytics. Data, graph & table courtesy of Insight Economics *Bloomberg  © 2011 HousingMatrix, Inc. | http://www.HousingMatrix.com | All rights reserved. Reproduction and/or redistributio n are expressly prohibited.  Hot Sheet is a registered t rademark of HousingMatrix, Inc. Information contained herein is based on sources believed to be reliable, but accuracy is not guaranteed. 250 300 350 400 450 -40 -30 -20 -10 0 10 20 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 T h  o  u  s  a  d  s  o f   U n i   t   s    M   o   n    t    h    l   y    %     C    h   a   n   g   e Monthly % Change Sales (Thousands of Units)

New Home Sales June 2011

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SALES SLIP, RECORD LOW INVENTORYNew Home Sales  – Thursday June 23, 2011

Record High: 1389k (07/05) Percent Change from Record High: -77.0%

New home sales fell 2.1% in May to an annualized pace of 319k, which was a bit better than an expected pace of 310k. Moreover, evenwith the decline last month, new home sales are 13.5% above their year ago level in May 2010. Nevertheless, at just over a 300kannual rate in the past three months, new home sales remain at an exceptionally weak level. Regionally, sales were mixed with a large26.7% decline in the Northeast, a modest decline of 3.5% in the West and a gain of 2.4% in the South. Sales in the Midwest wereunchanged on the month. The inventory of new homes available for sale fell 3.5% in May to a record low level of 166k whichrepresents a 6.2 month-supply at the current sale pace. Such low inventory levels will support pricing and the potential for newresidential construction when demand picks up. Home prices did fall from one year ago; median sales prices were down 3.4% fromMay 2010 to $222,600 as average prices declined 5.2% to $266,400. New home sales remain quite slow and continue to facecompetition from the large number of distressed properties on the market. Demand remains constrained by slow job growth, tight crediand rising energy prices. It will be a rebound in the broader economy that would restore demand drivers and get homebuilding and newhome sales back on track.

THOUSANDS OF UNITSForecast: 305k Monthly Average for

Consensus*: 310k Three Six Twelve Five TenActual: 319k May-11 Apr-11 Mar-11 Feb-11 Month Month Month 2010 2009 Year Year

New Home Sales 319 326 306 281 317 312 302 321 374 599 845

(percent change) -2.1 6.5 8.9 -9.4 -14.1 -22.4

Northeast 22 30 27 19 26 26 28 31 31 45 60

(percent change) -26.7 11.1 42.1 -42.4 -2.7 -11.1

Midwest 42 42 39 31 41 39 40 45 54 89 140

(percent change) 0.0 7.7 25.8 -26.2 -17.7 -21.8

South 172 168 168 170 169 168 165 173 202 321 421

(percent change) 2.4 0.0 -1.2 4.3 -14.5 -23.8

West 83 86 72 61 80 80 69 74 87 143 224

(percent change) -3.5 19.4 18.0 -15.3 -15.3 -22.9

Inventory 166 172 177 182 172 179 192 190 234 362 376Months of Supply 6.2 6.3 6.9 7.8 6.5 6.9 7.7 8.0 9.0 8.5 6.3

Median Sales Price ($000) 222.6 217.0 219.5 220.1 219.7 226.8 222.5 221.2 214.5 230.6 215.4

(year-on-year % change) -3.4 4.2 -2.4 -0.8 -0.7 2.6 2.2 3.1 -6.9

Average Sales Price ($000) 266.4 265.0 257.3 262.8 262.9 269.8 267.0 271.5 268.2 288.2 268.2

(year-on-year % change) -5.2 -2.0 -2.1 -7.5 -3.2 -2.5 -2.7 1.2 -7.2

Source: Bureau of the Census, Department of Commerce Via Haver Analytics. Data, graph & table courtesy of Insight Economics *Bloomberg © 2011 HousingMatrix, Inc.| http://www.HousingMatrix.com | All rights reserved. Reproduction and/or redistribution are expressly prohibited. 

Hot Sheet is a registered t rademark of HousingMatrix, Inc. Information contained herein is based on sources believed to be reliable, but accuracy is not guaranteed.

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