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The Housing Double Dip Is Here: December New Home Sales Down 7.6% From November, Miss Expectations

Tyler Durden's picture





 

From Bloomberg:

Sales of new homes in the U.S.
unexpectedly dropped in December, signaling a government tax
credit may no longer be helping shore up demand.

Purchases declined 7.6 percent to an annual pace of
342,000, the fewest since March, the Commerce Department said
today in Washington. For all of 2009, sales dropped 23 percent
to 374,000, the lowest level since records began in 1963.

Sales were projected to climb to a 366,000 annual pace from
an originally reported 355,000 rate in November, according to
the median estimate in a Bloomberg survey of 70 economists.
Forecasts ranged from 340,000 to 399,000. The government revised
November’s reading to 370,000.

The benefits from yet another government demand push-forward contraption expire: the cost: hundreds of billions in new debt.

 


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Wed, 01/27/2010 - 11:43 | Link to Comment Anonymous
Wed, 01/27/2010 - 11:46 | Link to Comment Missing_Link
Missing_Link's picture

It's never the end when you can extend and pretend.

Wed, 01/27/2010 - 11:48 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

Next headline: Barney Frank proposes raising tax credit to $16000 to stimulate housing recovery.

Wed, 01/27/2010 - 11:57 | Link to Comment Anonymouse
Anonymouse's picture

Double down baby!

Wed, 01/27/2010 - 11:53 | Link to Comment Anonymous
Wed, 01/27/2010 - 11:53 | Link to Comment Anonymous
Wed, 01/27/2010 - 11:54 | Link to Comment jobless_recover...
jobless_recoveriless_BS's picture

They need this "worse than expected" numbers to justify QE v2.0. Isn't it funny that these "bad" housing numbers came right before FED meeting, where they would discuss exit strategies and what to do about the MBS purchase program that is going to expire at the end of March?

Wed, 01/27/2010 - 12:01 | Link to Comment Anonymous
Wed, 01/27/2010 - 11:58 | Link to Comment Anonymous
Wed, 01/27/2010 - 12:11 | Link to Comment ElvisDog
ElvisDog's picture

The only comment I have is "Well, duh".

Wed, 01/27/2010 - 12:33 | Link to Comment A Man without Q...
A Man without Qualities's picture

Anyone can see the vacant houses that the banks are not even attempting to sell, so why buy now?  Better to wait for new incentives, cheaper housing and lower mortgage rates, all of which will come if people are patient...

Once the illusion of needing to move quickly to get the property (which leads people to make one of the biggest financial decisions of their life far too rashly) has gone, it takes many years to come back.

Wed, 01/27/2010 - 14:16 | Link to Comment curbyourrisk
curbyourrisk's picture

As much as it pains me there is only ONE solution to the housing crisis, atleast according to me.

 

Claw back all the mortgage payments every homeowner has made since January 1, 2000.  Take that money and apply it directly to the principal of the outstanding mortgage.  This would effectively reduce the amount of debt outstanding and reduce the amount owed going forward.  Rework the mortgages as of January 1, 2010 and start anew.  Yes, this hurts the banks, but who the fuck cares they screwed the pooch to begin with.  This would undoubtedly put MOST people back above water, would mostlikely create an instant FLOOR in housing prices and would actually STIMULTATE the ECONOMY since people could come out from under the debt that is holding spending down. 

Yes...principal forgiveness.  AND if the banks don't like it, they do not have to accept the terms of the proposal, but they must immediately foreclose on any property where the homeowners is more than 60 days in arrears, and mark the property to market...accordingly.

Yeah....math hurts.....deal with it banks.

Wed, 01/27/2010 - 16:46 | Link to Comment Anonymous
Wed, 01/27/2010 - 16:19 | Link to Comment Anonymous
Wed, 01/27/2010 - 16:56 | Link to Comment Brak82
Brak82's picture

Well i guess this shouldnt surprise anyone.

Wouldnt call it double dip though, there wasnt any real up to dip from.... (please correct my english, im learning by trial and error)

Wed, 01/27/2010 - 18:27 | Link to Comment Anonymous
Wed, 01/27/2010 - 19:02 | Link to Comment Anonymous
Wed, 01/27/2010 - 20:58 | Link to Comment colorfulbliss
colorfulbliss's picture

Holy shit...Did you just return from a CNBC seminar?

Wed, 01/27/2010 - 23:11 | Link to Comment Anonymous
Wed, 01/27/2010 - 23:18 | Link to Comment Kayman
Kayman's picture

Hey Anon 208411

With 2009 new home sales of 374,000, this translates into sales of 1025 homes per day. Therefore, there were several hundred homes in inventory and available for any given individual home sale. More inventory does NOT translate in to more sales ! There is at least an EIGHT MONTH SUPPLY of new homes right now.

Your argument does not hold water.

Speaking of water, you are witnessing the UNSINKABLE AMERICAN CONSUMER- hit an iceberg a couple of years ago.

The TRAGEDY/COMEDY is the Captain is still calling for more coal in the flooded boilers.

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