Existing Home Sales Drop -16.7%, Missing Consensus Of -10%, Biggest Monthly Decline In History
December existing homes sales dropped to a 5.45 million SAAR, down a whopping 16.7%, which was the wost monthly decline in history, compared to November's unrevised 6.450 million, missing both the consensus of a 10% decline to 5.9 million, as well as Goldman's bear case of -15%. Just as with the auto SAAR, with the government housing, this is yet another data series that is completely meaningless.
The drop was most acute in the Midwest, where the SAAR number declined by 25.8% from 1.55 million to 910,000, and best in the West, where California and associated banks are doing all they can to take advantage of consumers who have already forgotten the last housing bubble which now seems so long ago, and the decline was a mere 4.8% to 1.38 million.
Notably, the months supply number increased from 6.5 in November to 7.2 in December.
The NSA Median price increased from $170k to $178.3 k, mostly as a function of continue shadow inventory retention, and banks' hopes that lack of excess supply will generate more than excess demand, or some other knuckleheaded version of Say's law.
Luckily, at least Bernanke will get renominated, and the housing bubble can start afresh.