New Home Sales Collapse To 8 Month Lows

Tyler Durden's picture

New Home Sales collapsed 14.5% month-over-month to its lowest since July 2013. A mere 384k versus 450k expectations is the biggest miss since July. So much for the Spring buying season... This is a 7 standard deviation miss against the smart economists' estimates! Whocouldanode that when the free-money sponsored fast money leaves the game that real people with real debt and real wages are simply priced out of buying a new home? Supply of unsold new homes jumps to 6 months, its highest since Oct 2011 (as once again the visible hand's interference has produced yet another mal-investment boom as the 'if we build it, they will come' builders face an ugly reality).

 

 

The Economists nailed it... (Deutsche's Joe Lavorgna was above consensus at 460k)

 

 

Charts: Bloomberg

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Kaiser Sousa's picture

bullish....Dow 33,0000

NasCrap 50,000...

Gold $35...

Silver Free....

 

Headbanger's picture

Who could have ever seen this coming?

 

Oh.. /sarc

 

So Close's picture

Was listening to report on same on the radio yesterday.  Announcer said it was beacuse of "lack of available inventory."  Nothing to buy.  Fucking liars.

Dr. Engali's picture

Lol... There's plenty of inventory around here.

BKbroiler's picture

Headline says "Collapse".  Drink!

CrashisOptimistic's picture

Here.  You don't need a headline:

http://research.stlouisfed.org/fredgraph.png?g=7iv

 

That's 1960s level of sales, with 60 million more people in the country.

Still object to "collapse"?

NoDebt's picture

There's only a lack of inventory at a "we're going to basically steal this house from you" price.  That's where the market wants to be, but nobody who owns one is willing to take the hit.  So they linger and linger and linger.

Son of Loki's picture

Unless 'they' revive the zero-down, subprime, no-doc, NINJA mortgages, the housing market may actually correct.

Reversion to the mean. That would be mean.

Bill of Rights's picture

Funny I can drive my Neighborhood and count 20 homes for sale that have been available for nearly a year lol...fucking liars for sure. Then again you can't blame the ACTORS they are only reading the script they receive.

tarsubil's picture

Well, yeah, those aren't new. LOL. And the band played on...

disabledvet's picture

"new construction" is the market.

PERIOD.

New construction means "Teslas in every driveway."

New construction means Solar Cities.

Everything else is just a so called asset getting depreciated to ZERO and can...and WILL...but had...FOR ONE DOLLAR.

DeadFred's picture

Sadly I don't live where you do. My daughter is trying to buy near us. Houses are still selling the day after they come on the market. Sometimes they aren't much over asking though so there is hope. Bay Area is the last holdout in the country maybe? Fingers crossed.

CrashisOptimistic's picture

EVERY SINGLE HOUSING THREAD . . . you get 30 ZHers talking about houses for sale for years and not moving in their area.

Then you get one guy in 1 tiny segment of one county who says it's booming.  Or that's extreme.  Maybe 3 tiny segments of 3 counties (NY, Calif, FL).

But you know what? MOST PEOPLE DON'T LIVE IN THOSE PLACES -- but that's where the reporters go to do interviews.  They don't get on a plane to fly to Springfield, MO.  Or to Lincoln, Nebraska.  Or to Colorado Springs, CO.  Or to Des Moines, Iowa.

Bloomberg is in NYC.  So their reporters drive to some NYC suburb and reports a boom, because, you see, NYC is normal in their mindset and all those other places are not normal, even if all those other places add up to 10X NYC's population.

hankwil74's picture

The population of the NYC, San Fran/San Jose, Los Angeles and Miami metro areas (the 4 largest cities in the areas you mentioned) combined is 43.5 million people.  Lincoln, Nebraska is 240k people.  Who gives a shit about Lincoln, Nebraska?  Des Moines? 205k.  Who cares?  The entire midwest will be a desert in 70 years when the Ogallala aquifer runs out.  

Colonel Klink's picture

I guess the same could be said for the MSM teleprompter readers too.  Journalists are a dead breed.

firstdivision's picture

Oh that was my bad.  Didn't know it was my turn to put a "For Sale" sign in my front yard.

tarsubil's picture

This really is strange. On the ground, it looks like construction is picking up. I see developments with houses priced in $500K+ range starting to sprout up a lot. Are these Chinese owned luxury rentals that are being built with cash?

Temporalist's picture

Yes they are Chinese owned - anchor baby farms.

Bunga Bunga's picture

Get over it, in central planning economic data do not matter anymore.

Dr. Engali's picture

Get to work Mr. Chairman.

MeMongo's picture

Man! These charts out this morning are uglier than that hoetoe conchita wurst!

buzzsaw99's picture

stealth qe can fix this

i_call_you_my_base's picture

Almost time to unleash some sort of Fed bullshit for housing.

Itchy and Scratchy's picture

She's a brick house ..mighty mighty ...just lettin' it all hang out!

Kaiser Sousa's picture

might as well post shit that has nothing to do with this ongoing shit show...hilarious mate...

cheers....

Itchy and Scratchy's picture

'The lady's stacked and that's a fact, ain't holding nothing back!'

Kaiser Sousa's picture

"B -i- n-g - o,

and Bingo was his name "O"...."

Itchy and Scratchy's picture

'She's the one, the only one, ... built like an amazon.'

F.A. Hayek's picture

Sure, but how many pancakes does it take to shingle an elephant?

Itchy and Scratchy's picture

'The clothes she wears, the sexy ways, makes an old man wish for younger days.'

 

https://www.youtube.com/watch?v=-5EmnQp3V48&feature=player_embedded

TruthInSunshine's picture

Speaking of shingles, the cost for just one square (10' by 10') of standard grade shingles (like IKO) is now about $90 to $100.

That doesn't include installation costs.

This same square was approx $70 to $75 in 2010 to early 2011ish.

That's just one example of building material costs rising 30% in the last 3 years, despite new construction being at 1960s levels (and off a peak of 2,200,000 units built in 2006 to 400,000 to 450,000ish today).

And shingles, whose main constituent production input cost is the price of a barrel of oil, are now 35% more expensive with oil @ 102/barrel than they were when oil was @ 140/barrel in 2007.

That's just shingles; Lumber, sheetrock, CONCRETE, brick, insulation, nail/fastener, OSB, window, etc. prices have all similarly risen, more or less, in that same time frame, despite there being a literal 25% of the new construction vs 2006.

It's so distorted that Georgia Pacific, Weyerhaeuser, USG, etc., closed many sheetrock, OSB, shingle, insulation making facilities to try and boost per unit margins (which meant layoffs and closed manufacturing facilities).

Do you see how the Federal Reserve-Wall Street Commodity/Financialization-Industry Racketeering Visible Hand screws up price equilibrium, and sets us up for massively distorted economic disequilibrium that leads to the next CRASH?

Took Red Pill's picture

It's because of the weather

Max Damage's picture

And still the crooks will not change course and continue to attack normal US citizens. And those citizens will, bend over, take up the arse, and say nothing

SheepDog-One's picture

Fed created 30 trillion new debt and all I got was this lousy greatest depression!

SpasticGramps's picture

If you like your depreciating asset, you can keep your depreciating asset.

 

Asses.

F.A. Hayek's picture

What we need now is an Affordable Housing Czar and a Non-Conforming Home Loan Czar

Tsar Pointless's picture

Hey. I am the Tsar of all things pointless, so considering those are two pointless endeavors, they fall under my jurisdiction.

My motto: If it's pointless, then I'm your Tsar!

F.A. Hayek's picture

This is good, please continue forward. And don't forget to not pay your taxes, you could be nominated for an ambassadorship and a nobel peace prize.

codecode's picture

and most likely a bonus too...

ejmoosa's picture

And these are annualized rates, right?  So divide by 600 and see how many the average state had.

 

Not very impressive at all.

Seasmoke's picture

Housing is a LIABILITY. NOT AN ASSET. 

F.A. Hayek's picture

+1000. I've already mentally written off my 1 bedroom hovel, it's the prudent way to look at housing.

Cursive's picture

Open the borders!

papaswamp's picture

Housing bubble is no longer needed now that we have the forced healthcare bubble.

Ness.'s picture

We close green unless WWIII breaks out today.  These 'markets' are a joke.  After 6 straight days of BS gains, a complete collapse of home sales and we break a measely 4.0 in the USD/JPY/SPY?  Give me a fucking break.  PPT ain't having no down days when the Prez is on his Asian vacation.   

Ban KKiller's picture

In the continuing saga of me fighting the banks re: foreclosure...

After the last round where I asked for sanctions against the plaintiff and their attorney, for submitting a forged document, the note with NO indorsement, the attorney firm wants to...withdraw! I said no, I oppose the motion to substitute attys until we find out about the sanctions for fraud upon the court. Have not heard the final answer/reply from the attys regarding my opposition to motion. 

I KNEW they put in a forged doc and challenged them. Think I have been heard in court? Ummm...no. They know they are fucked. I KNOW (thanks ZH ) that banksters are fucking idiots and they hire complete stooges for attys. I am doing this pro se. 

Yes, I am a deadbeat living in my house for taxes, upkeep and insurance costs only. 

Big banks are criminal outfits...but we all know that. Too bad more people don't fight.

Stacking lead and fuck the FED. 

Toolshed's picture

Bravo my good sir!! And good luck to you.

Almost Solvent's picture

+1!

 

Don't be shocked (shocked!) when the Judge lets the attorneys out (it all a big club don't you know) when they throw the bank under the bus.

 

Because that's what attorneys do when it comes down to being caught with forged documents - throw the client to the wolves by claiming that the client provided the document to the attorney and LIED to said attorney! Poor guy, being lied to by his client. (wink wink)

 

Seen it too many times to count. The client is always the one under the judicial wheels, not the attorneys. (Unless said attorney has stolen client trust funds - that's about the only time attorneys catch shit)