Existing Home Sales Drop Year-Over-Year For First Time Since 2010

Tyler Durden's picture

Despite surges in mortgage applications juxtaposed with notably downbeat commentary from KB Home and Lennar, existing home sales rose modestly in December (+2.4%) but missed expectations for the 2nd month in a row (+3.0%) for a SAAR of 5.04mm sales. Only the Southern region saw sales improve. However, for all of 2014, there were 4.93 million sales, a 3.1% decline from 2013 (5.09 million) - the first drop since 2010. This should be no surprise as NAR finally admits the problem (instead of blaming weather) - “Housing costs – both rents and home prices – continue to outpace wages and are burdensome for potential buyers trying to save for a downpayment while looking for available homes in their price range.” It's the price, stupid!

 

 

For the first YoY drop since 2010... as the "echo bubble" bursts...

 

The trend of weak housing data continues...

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kliguy38's picture

NAR Not Actually Real

SickDollar's picture

Here is the East coast ,more and more  houses are on market  for over 300 days now

 

PartysOver's picture

How much of the decline is due to foreign buyers walking away because of the dollar.

Which begs hte question how much of the rise was from foreign buyers to begin with.

 

Bangalore Torpedo's picture

Not where I live in the coastal Southeast.  Instead we're getting flooded with old coots that want to live without getting TAXED to effing death!

JRobby's picture

The supply of waterfront is fixed. It will always carry a premium and it will always sell. Especially 10 years out from major storm mayhem.

Throw that out of the calculation.

Tsar Pointless's picture

I'll betcha they still want everything thing in the world, though. They just don't want to pay for it.

"Gimme gimme gimme! But don't ask me to foot any of the bill for it!" The Baby Boomer mantra.

Bangalore Torpedo's picture

LOL...not really.  Hell they all have lawn service, a pool bitch, and an errand boy to go fetch groceries.  They pay for it!  When their property tax bill goes from 20,000 to 2,000, and their house goes from Jersey City row house to suburban McMansion they seem not to give a crappola.  And the upside...they are all at Denny's by 5 pm and in bed by 7 pm.

JRobby's picture

"they all have lawn service, a pool bitch, and an errand boy to go fetch groceries"

That is good, it keeps them off the road.

A large number of them have the "need to go out for something" (I forgot what it was now?) in the morning in no particularly hurried fashion. Understandable when you can't remember where it was you were going. What commuter traffic?

Steady intake of Dr. ordered Big Pharma Rx products can't have anything to do with this.

Blano's picture

+100 for the upside Lol.

There's always a silver lining. 

JRobby's picture

Private Equity and Hedge Funds have had their fill of mortgage and deed purchases.

(2013 FL over 60% of deed purchases were cash)

Apps are up? Then declines must be up too?

XqWretch's picture

THE SHADOW OF CRISIS HAS.... ah fuck it...

j.tennquist's picture

If it don't flip, we can't permit.

Renting is liberty!

And

War is Peace

Freedom is slavery

Ignorance is strength.

starman's picture

You forgot debt is growth.

tarsubil's picture

Snipers (aka oligarch hitmen, aka murderers) are heroes.

Drones are people.

Gab Timov's picture

I'm waiting for prices to get back to pre-bubble levels. At the heights of the bubble in Baltimore, a tiny two story rowhouse was going for around $300,000. prior to the bubble it would have been around $30,000 or less for the same house.

fast and furious's picture

47% of Americans on Welfare; almost 93 million not working (some crossover there!).  You BET it's about the prices. And the mortgages. And the banks not lending.  

The9thDoctor's picture

And the ones that are working cant afford the down payment, nor these monthly mortgage rates on houses $200k and up, which is virtually all houses nowadays.

The9thDoctor's picture

And the ones that are working cant afford the down payment, nor these monthly mortgage rates on houses $200k and up, which is virtually all houses nowadays.

SethDealer's picture

shits going to ZERO

AynRandFan's picture

We reached the rate of existing home sales first reached in 1998: http://www.tradingeconomics.com/united-states/existing-home-sales
New home sales are still below 99% of the last 50 years: http://www.tradingeconomics.com/charts/united-states-new-home-sales.png?...

nightshiftsucks's picture

I live in the SF Eastbay,houses started to sell again and not much inventory.Just refinanced,we're kind of boderline but it went through pretty easy.When we signed the paper work the guy said the loan would be sold,I'm curious to see who buys it.

Farmer Joe in Brooklyn's picture

If you own a home, here's a trade idea:

Sale/Leaseback

This shit is coming in and you'll have a chance to buy something better for less in a couple of years.  Can even use some of the proceeds to hedge any other market assets in 401k and such (ie, buy puts, physical gold, etc).

While waiting, you can stay in your same recliner, in the same den, and enjoy the collapse in value that somebody else is taking up the ass.

Soul Glow's picture

I'm sure this was also reported on Bloomberg and cnbc.