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Existing Home Sales Miss 4th Month In A Row; Lowest Since October 2012

Tyler Durden's picture




 

NAR chose to blame the weather in keeping with the rest of the nation as it cited "cold" in the Northeast and Midwest for the 4th miss on existing home sales in a row and the lowest level of sales since October 2012. What is ironic is that while the always independent NAR proclaims weather to blame for the miss (despite Midwest condo sales up 14%!?), it crows that December sales were the strongest for a December in 7 years. The median home price rose 9.9% Year-over-year (so half that of China's). NAR sums it up: "we lost some momentum toward the end of 2013 from disappointing job growth and limited inventory..."

 

 

It would appear home sales are catching down to the collapse in mortgage applications as the fast-money cash-buyers have stepped away for now...

 

And rather than blame any of this weakness on the reality of a crushed consumer... NAR chooses to reflect on the good times of over easy credit...

“The only factors holding us back from a stronger recovery are the
ongoing issues of restrictive mortgage credit and constrained
inventory,”

 

 

Charts: Bloomberg

 

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Thu, 01/23/2014 - 11:17 | 4358805 LawsofPhysics
LawsofPhysics's picture

Odd, this isn't what CNBC is "reporting"?

Thu, 01/23/2014 - 11:18 | 4358811 Bearwagon
Bearwagon's picture

Of course! After all - this is where things get interesting, isn't it?

Thu, 01/23/2014 - 11:21 | 4358819 kliguy38
kliguy38's picture

reality is a bitch for a good con and time will eventually show the truth......the game is still CONtrolled and when they have to they will pull the plug on the suckers and then gold will show what it really is for and that is a store of wealth

Thu, 01/23/2014 - 11:59 | 4358998 Kaiser Sousa
Kaiser Sousa's picture

parallel universes...

one propaganda...

"WASHINGTON (MarketWatch) — The pace of home sales rose in December, pushing 2013’s tally to the highest level in seven years as an improving economy and pent-up demand boosted demand, according to data released Thursday.

The seasonally adjusted annual rate of sales rose 1% in December to 4.87 million, the National Association of Realtors reported. Meanwhile, for all of 2013 sales hit 5.09 million, the most since 2006, and up 9.1% from the prior year. Economists polled by MarketWatch had expected a December sales rate of 4.9 million, matching NAR’s prior estimate for November. On Thursday NAR revised November’s sales rate to 4.82 million."

the other reality....

Thu, 01/23/2014 - 11:34 | 4358878 Dr. Engali
Dr. Engali's picture

What's a CNBC?

Thu, 01/23/2014 - 11:45 | 4358934 Pure Evil
Pure Evil's picture

That's where Crappy Nappy Bitches Cum.

Thu, 01/23/2014 - 11:59 | 4359008 Headbanger
Headbanger's picture

Communist National Broadcasting Company

Thu, 01/23/2014 - 11:41 | 4358879 bigkahuna
bigkahuna's picture

CNBC Headline: "Closing Time! Home resales strongest in 7 years."

Main story on cnbc.com at 1035 ET:

U.S. home resales rose slightly in December after three monthly falls in a row, as record low mortgage interest rates and pent-up demand continue to sustain a recovery in the market.

The National Association of Realtors (NAR) said on Thursday that sales of previously owned homes rose 1.0 last month, to an annual rate of 4.87 million units. Total sales for 2013 were the strongest in seven years.

Economists polled by Reuters had expected home resales to rise to a 4.94 million-unit pace in December.

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war is peace, freedom is slavery, ignorance is strength.

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Thu, 01/23/2014 - 11:57 | 4358991 CheapBastard
CheapBastard's picture

"No one saw this coming,"....

Thu, 01/23/2014 - 12:29 | 4359117 Ban KKiller
Ban KKiller's picture

ORWELL/SNOWDEN 2016! 

Thu, 01/23/2014 - 11:20 | 4358815 HelluvaEngineer
HelluvaEngineer's picture

Bullish for PVC farms...

Thu, 01/23/2014 - 11:22 | 4358823 Smegley Wanxalot
Smegley Wanxalot's picture

NOW IS THE TIME TO BUY! 

Gotta be true cuz I heard it on the radio.

Thu, 01/23/2014 - 11:22 | 4358828 bigkahuna
bigkahuna's picture

Its the weather, the weather...

Thu, 01/23/2014 - 11:23 | 4358834 Temporalist
Temporalist's picture

“The only factors keeping us from flying is a lack of unicorns with wings, magic Skittles and lots of heroin."

Thu, 01/23/2014 - 11:25 | 4358840 Yen Cross
Yen Cross's picture

   " Limited inventory?" lol

Thu, 01/23/2014 - 11:31 | 4358860 EuropeanBankster
EuropeanBankster's picture

Where is BlackRock?? Did they realize that nobody can afford to rent their real estate afterall and pulled out?

Thu, 01/23/2014 - 11:34 | 4358880 Gromit
Gromit's picture

"Median Price rose 9.9% year on year."

The investor demand for decent yield via rental housing exceeds the number of homeowners willing to sell.

 

 

 

Thu, 01/23/2014 - 12:19 | 4359063 CheapBastard
CheapBastard's picture

It's harder and harder to suck a decent yield out of rental units. With rising property taxes, home insurance, maintenance, turnover, tenant damage, eviction costs, coming rent controls, growing oversupply, high risk of another house price correction, etc....it can be rough. You're competing with massive apartment complexes now that offer several months free rent also.

At the same time S&P wa s up over 18%. That's hard ot beat and all you do is tap your keypad for that return as opposed to fight with a tenant.

jmho

Thu, 01/23/2014 - 12:24 | 4359091 Gromit
Gromit's picture

You can achieve at least a 4% yield using professional management, either owning direct or through a hedge fund.

My profile for the investors is former CD and T Bill holders. They don't trust the stock market, just looking for a reasonable safe yield.

Thu, 01/23/2014 - 11:27 | 4358841 gaoptimize
gaoptimize's picture

OT: Mark Levin gives well deserved and high praise hat tip to Zerohedge at 6:15 PM last night on his nationally syndicated radio show.

Thu, 01/23/2014 - 11:34 | 4358870 Dr. Engali
Dr. Engali's picture

Damn this thing would really fly if we could go back to the glory days where they would 100% finance any stiff that could fog a mirror...and even some that couldn't.

Thu, 01/23/2014 - 11:36 | 4358884 Gromit
Gromit's picture

They'll do it if necessary.

Thu, 01/23/2014 - 11:53 | 4358946 Pure Evil
Pure Evil's picture

They're just waiting for amnesty to be passed. By then we'll have 30 million new citizens willing and able to move into an empty house in your neighborhood using one of those newfangled NINJA loans.

If you object, then obviously your racist.

Thu, 01/23/2014 - 11:43 | 4358915 Sufiy
Sufiy's picture


Gold Jumps As Mother Of Short Squeeze Arrives


  Gold jumps today more than 2% and is up now $28 to $1265 level. The real fireworks will be started after Gold cuts through $1270. Few news appear to be behind the move: another set of rumours of relaxing Gold import policy in India, bad economic data from China with PMI below 50 and pumped rumours in the western press about coming default in one of the shadow banking system products. US markets are sharply down today on Jobless claims and dismal Existing Homes Sales.    But the real story is US Dollar which is almost in a free fall and is crossing 80.60 level to the downside. This time we have the normal correlation and falling US Dollar is sending Gold to confirm its break out from 2013 Double Bottom at $1180. http://sufiy.blogspot.co.uk/2014/01/gold-jumps-as-mother-of-short-sq


There Is No German Gold Left At The New York FED GLD, MUX, TNR.v, GDX

 

Thu, 01/23/2014 - 12:22 | 4359080 CheapBastard
CheapBastard's picture

My co-worker tells me he cannot find any 2oz perth gold lunars online anymore. Who is hoarding that stuff?

Thu, 01/23/2014 - 13:17 | 4359305 D-Fens
D-Fens's picture

Not me.  I lost all my gold in a boating accident last month and realized the error of my ways.

I'm now fully invested in 30 year Treasuries and an S&P 500 mutual fund and feel much better.

Thu, 01/23/2014 - 12:07 | 4359027 Kaiser Sousa
Kaiser Sousa's picture

hey, notice how the London close paper price attack...

same shit every day...

http://www.kitco.com/charts/livesilver.html

and for reference heres the last hour of trading...

http://www.silverseek.com/quotes/hoursilver.php

Thu, 01/23/2014 - 12:23 | 4359087 WTFMOFO
WTFMOFO's picture

My wife and I applied/pre-qualified and were going to buy a new place with some property.  Yeah right, prices were 30% higher than 2 years ago and at and all time high over the bubble....no way am I BTATH!

Thu, 01/23/2014 - 12:40 | 4359162 CheapBastard
CheapBastard's picture
Hamptons mansion sales cool off

 

http://www.cnbc.com/id/101355935?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=101355935|Hamptons%20mansion%20sales%20co

 

The market is "cooler" at every level.

Thu, 01/23/2014 - 12:48 | 4359191 Spungo
Spungo's picture

I might blame this one on cold weather in some areas. Seriously, who goes house shopping when it's bitterly cold? When I worked at McDonalds a few years ago, the place would be completely dead on the coldest days, and that's a place that satisfies hunger. If people don't eat when it's cold, they sure as shit won't buy houses.

This is why you should buy houses in winter. Housing prices fluctuate a lot throughout the year. Prices are at their highest around May-June and they are at their lowest in winter. Cars are cheap in winter as well. Walk into a car dealership when it's -20F and you'll be the only person they've seen all day. It's even better if it's the end of the month and they are desperate to make an extra sale.

Thu, 01/23/2014 - 12:59 | 4359223 dexter_morgan
dexter_morgan's picture

The recovery marches FORWARD

Thu, 01/23/2014 - 13:04 | 4359252 Frank N. Beans
Frank N. Beans's picture

Like the above commenters, I am just a little confused about what is actually the truth. From Bloomtard (bold added to show my confusion):

 

"Purchases of previously owned homes climbed in December for the first time in five months as job gains and healthier household balance sheets helped Americans adjust to higher mortgage rates.

Sales rose 1 percent to a 4.87 million annual pace, less than projected, figures from the National Association of Realtors showed today ..."

 

So if Americans are economically better off now, whey did sales rise less than expected? 

Thu, 01/23/2014 - 14:27 | 4359631 thefirstabomb
thefirstabomb's picture

http://dhnnews.com/most-germans-dont-buy-their-homes-they-rent-heres-why/
Germany is proof that house ownership is not esential to a vibrant economy.  It also makes the workforce less mobile raising the structural unemployment in the market. 

Thu, 01/23/2014 - 15:47 | 4359937 Spungo
Spungo's picture

I tie my gold to my ankle when I go boating so I never lose it.

Sat, 01/25/2014 - 05:47 | 4366062 shawnmike
shawnmike's picture

Meanwhile the controlled sell-off in US equities is just that, completely controlled, and ready for the late day ramp. All while they go mad for bonds. Whatever, don't think anyone's jumping from windows on Wall Street just yet visit site:leather jackets shop - http://www.sydneyleather.com.au

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