New home sales took it on the chin again.

Sales fell 10.2% in January to a seasonally adjusted rate of 309,000 units. This represented a drop of 48.2% from January 2008. Inventories of new homes fell 3.1% to 342,000 which represents a 13.3 month supply of homes.

At least the builders aren’t adding to supply. It’s hard to see how this gets any better given that the builders can’t compete on price.

more: here (market watch) and here (calculated risk)