New Home Sales dropped 3.6% from August 2009.

The median price was $204,800 with an average price of $282,600.

At the current rate there are 7.5 months of inventory with 251,000 new homes for sale.

Calculated Risk is calling the difference between new home sales and existing ones the distressing gap, for CR claims this is indicative of distressed sales and the government's first time home buyer credit.

^{Src: Calculated Risk}

Remember new homes means jobs to build the homes.

Yesterday the Case-Shiller home price index showed an improvement in the rate of price decline.