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New Home Sales Plunge; Miss By Most Since July
The taper-driven rate-rise scare mid-summer that stalled home-buyer (speculator) confidence has been matched by the Decmeber 2013 numbers. New Home sales plunged 7.0% against expectations of only a 1.9% drop as total sales (seasonally adjusted and annualized) dropped to 414k - the biggest miss (against 455k exp.) since July 2013. Of course the data is dreadfully sparse and noisy, as we note a mere 1,000 (non-seasonally-adjusted) homes were sold in the Northeast. Notably, the exuberant levels of the last few months have also been revised markedly lower.
Perhaps the most disturbing data point was the number of actual new houses sold in the Northeast region when observed on an unadjusted, not annualized basis. The only thing one can possibly say here is that at 1,000, at least it wasn't zero.
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Que the next FOMC notes about raising bond buying by $20B
...due to the nasty Polar Vortex, bitchez !
My mom's old house was not one of the "lucky thousand" that sold in the NE, I can tell you that. Regular-guy houses aren't moving. Period. Price doesn't even matter. I had an offer 2 weeks ago $75K under the $200K asking price. That's the ONLY offer in 7 months on the market.
I could get more money for it by burning it down and collecting the insurance than I could by selling it.
I'll also add that new home sales, dismal as they are, are still the preferred dwellings over existing homes in the minds of whatever buyers are left. Existing homes are, apparently, supposed to be like buying a used car nowadays- half the price of a new one the minute you drive it off the lot.
"You didn't build that"
Vacant land without onerous zoning is the hot ticket so far as I can tell. An existing property is oftentimes a negative.
SE MI here and we just missed out on a vacant lot in a good location for us. Builder grabbed it, after picking up the four across the way. Only other property in this old/nothing special neighborhood was a 1000 ish sq. foot. 2/1/1 1950's rancher. Lot across from it sold for $80K. We decided the garage, well, and sewer were worth about $55K, so $135K fair value plus the good/bad of the house. Priced at $175K. We called and were told there was a lot of interest and already an offer.
Thing is that with a home that age you likely have poor insulation, need new windows, may have to deal with asbestos or lead paint, galvanized pipe, etc.
So, yeah, we would rather buy new or build if we can swing it.
I've seen a couple of rural-ish properties listed where the old house is being split off into its own parcel and then the rest of the land is being sold as vacant lots.
Houses in DC area are moving briskly still and prices are still much higher now than any time in winter in the past 5 years or so I'm told. Our plan was to unload our hovel in summer like we did and then catch the downturn in the winter to buy a SFH in a better hood. Prices have gone nowhere but up since then even in the cold winter. So much money in this area...
What a surprise, where do you think the 85 billin go? DC is one of the greatest recipients of this theft. Govt workers have felt no pain at all along with govt contractors. They still walk into their buildings, sit at their desks, stamp paper robbing the people, and pick up their check, complete with cost of living raises as planned. No pain for them, everythng is great. And what do they produce? NOT A FUCKING THING. They're parasites.
Strangely enough, this came to mind: http://www.youtube.com/watch?v=iOzYfPxgJB4
The weather was too bad to make stuff up last month
< meh > It has been a cold winter, people havn't left their own house, much less look for a new one. Please, a non event. Taper on (I hope).
is that really only a 1,000 new homes sold?
no..... 10
well it is freezing and if I'm not mistaken, it also rained last month so...
It's cloudy today in New England. There is no way in hell I would buy a new house on a cloudy day. Maybe the groundhog will have a better forecast for the FED in a couple of weeks.
it never rains in california
but sidden debt do I warn you
It pours, man it pours
Maybe we need to start building cities no one lives in like the Chinese do to prop up our building industry. Oh wait a minute, we already do, it's called Detroit.
Actually China is busy buying that empty city too.
and Manhattan
And this even with many home purchases being with cash only.
Where are the geniuses who said rising rates wouldn't affect housing?
"Hong Kong is up for grabs,
London is full of Arabs,
We could be in Palestine,
Overrun by a Chinese line,
With the boys from the Mersey,
And the Thames and the Tyne."
Elvis Costello and the Attractions - "Oliver's Army", circa 1979
http://www.youtube.com/watch?v=Yhkwj85VzcE
The cash only component, I think, is fueled in part by bad titles.
/mers secret electronic mortgage society
Let's speed up this collapse......I was heartened by the developments on Friday and Sunday night, my boner is now gone from a rocket to a half cocked u-shape.
Seriously, is there anything I can do to help this move along.....real question.
Convert your fiat to PM's.
Well, besides the obvious.
Luckily the Dec. unemployment report and the Dec. retail sales report were both strong. Sarc mode of.
When will people learn that houses are just plots that have many tubes hooked up to them to suck the victim owner dry, including his/her children and spouse..
My closest metaphore to a house is an airline, and how many of those stay in business?...
If you are foolish enough to think you own the land under your feet, all I can say is try moving it to a more free land. You can't and quickly realize you are a prisoner of what you have always felt would set you free.
Properties are always targets, especially in bad economic times. Just as you will never own the mineral rights, you will be bled dry of any capital gains over time..
Ummm, not until the next collapse, even then it's questionnable. The powers that be have done a great job at convincing (lying to) people that home ownership is an excellent path to wealth. And let's be honest people are not getting any smarter.
I am so sick of this shit. Real estate is all about location location location. No big surprise that the Northeast can't move houses -- you know why? Because all these asshole Yankees move South where we have jobs and no unions (wow, amazing how that works). Bunch of cockroaches buying up houses with all cash purchases, keeping housing prices artificially higher for us locals. Fuck you Yankees, stay in your Blue States with your liberal agenda and the problems and taxation you create as a result. And sorry if you can't sell your house. You made your bed, now lie in it.
Yea, fuck Yankees - they ruin it for everyone. God, can't Texas just seal our boarder to the North, East and West already....
Edit: also, if they could put a fence around Travis County - that would be great too.
Texas needs to start sealing the border south before Texas becomes another third world shithole.
You people crack me up. The Mexicans are not the problem.
Native Texan here, lived there over 40 years. Texas was really nice until the late 80's - early 90's when the mass influx of Northerners really got started. Too many people, not enough infrastructure, not enough water, and if you are a local many times you have the lovely experience of a new person on the job making more money because they moved from an area of higher wages and so were able to demand a higher salary. Most of the people living in McMansions in the gated communities are Yankees.
Now I'm in MI. Much less crowded, less traffic, better produce, cleaner air...freaking cold right now for sure.
Our first friends here are a nice Mexican family. Invited us in, treat us like family. We are going to their house for Candelario and the wife says she will teach me to make tamales.
Wow, that scares me that native Texans are moving out....if Texas goes, it's all over.
No place is perfect.
For now MI is part of the Great Lakes watershed, not as cold as MN and WI, and it is the second biggest agriculture state after CA. Homes on large lots w/well and septic system are pretty common and should be suited to serious gardening.
A little concerning that the Right To Farm may be encroached. Not a done deal yet, but they are talking about making property owners conform to local ordinance in areas zoned residential if they have less than 50 head of livestock. Not liking that at all as there is a lot of residential zoning, even areas with multi-acre lots.
I came to Texas to stand with real Texans....I belive Texas is the tip of the spear.
And what? Have NWO-globalist Rick Perry at the helm? His little stooge Abbott is ridiing in on his coattails. Many don't know why he is in a wheel chair, but the story goes he was jogging in his neighborhood after a thunderstorm and while on the sidewalk a limb snaps from a tree in someones yard, falls on him, makes him a paraplegic, then Abbott sued the guy for $10 MILLION DOLLARS and won. Then he started a lucrative career as a politician.
Told the wife 2 years ago that in 5 years I was moving South. She said there was no way she was going and I pointed out to her that I said I was moving. I also added that she was invited. I'm not making this up but last night she is watching one of those shows where the people pick between 3 houses and she turns to me, I was reading at the time, and she says, so are we getting a beach house or something in the hills? See you in a few years.
Look I don't blame you people for wanting to move; if I had to live next door to Snooki or have Chris Christie for a governor, I'd blow my fucking brains out. Just keep your mouth shut when you move here, don't ask us why we talk funny, and for godsake don't complain about the damn heat.
And make sure you drive like WE do!
(You CAN turn right on red down here. Just make sure you stop because the red light cameras are blooming).
We don't expect illegals to follow the rules in this country, now you want us Yankees to? That's asking an aweful lot isn't it? </sarc>
I literally said the same thing to my wife. I said, "When our youngest graduates high school I'm moving to the coast in the Dominican Republic and you're invited. I'll be sending our 3 kids my new address and I'll offer them free airfare whenever they want to come visit."
She's rapidly warming to the offer, but I was clear that I was going either way and she was invited. I hope she joins me, but life goes on either way... I can't take the Northeast anymore and I don't know if I'll make it until 2021. I may have to have my youngest go to Dominican High School. At least he'll become a good baseball player.
Duke, the cash buying was done by BANKSTERS to prop the market up and rent the houses back to the people they threw out of the houses so they can continue to rob them. It's not the "Yankees". The Yankees and you and everyone else need to stop fighting amongst each other and understand WHO the common enemy is.....THE POLITICIANS AND THE BANKSTERS. The people paying cash are not the guy who got a job with a wife and two kids, they're renting. It's the funny money that Berfucktard printed up and handed to the banks and hedgefunds at zero percent interest. You think YOU could buy some shit if someone handed you 18 billion dollars at zero interest? THOSE ARE YOUR ENEMIES.
Perspective on new home sales. Regardless of weather...still the worst in over 20 yrs.
http://research.stlouisfed.org/fredgraph.png?g=rog
Sorry, this is the chart you meant to show:
http://research.stlouisfed.org/fredgraph.png?g=7iv
1960s levels, with 50 million more people alive.
50 million?
You mean more like 150 million, don't you?
What about the tens of millions of homes stuck in "foreclosure inventory" at your friendly neighborhood bank?
How about getting those on radar???
Most of these homes have become first class shit holes - due to neglect - good luck selling that dead inventory - fucking banksters!!!!!
The chains of title concocted by the banks to those were clean enough to foreclose.
But...they aren't clean enough in the beady eyes of the same banks to be "eligible" for financing.
Even muppets with pristine credit/big down payment/income ratio...hence cash only.
That second chart is interesting. Housing took a dive in 2008 then it seriously went to shit around 2011.
There was an article in my local Daily Fishwrap that many 'youngins' are co-habitating before marriage. I didn't read it past the title but my first speculation is that most young people CANNOT afford to live alone and afford to eat at the same time.
Just saw on CNN that house sales are @ record highs. Hmmmmmmm, soneone is lying. I'm putting my money on cnn lying. What a surprise.
This news souldn't suprise anyone as, thankfully, there have not been any fires, floods, earthquakes or tornados in a while now.