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New Home Sales Tumble By Most In Almost 2 Years As Northeast Crashes
After existing home sales sent stocks vertical on great news, so new home sales plunge has sent stocks vertical on bad news. An 11.1% drop MoM - the biggest since July 2013 - dragged new home sales back below 500k to 481k SAAR - the biggest miss in a year. Sales of new homes collapse 33.3% in The Northeast and The South saw new home sales crash 15.8%.
But the weather didn't affect Existing Home Sales:
The biggest MoM drop in almost 2 years:
And this is what the long-term trend looks like:
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And treasury yields fall on announcement just to be immediately reversed by a knife-catching surefire short with seemingly endless ammo.
and sure enough at 10:07 as yields fall again the brave wealthly short comes in and pushes it up in a nano-second.
Do your duty. Pick up this 632 sq. ft. dream home for a measly $700K: http://www.zillow.com/homedetails/2077-Cable-St-San-Diego-CA-92107/16961....
An real estate agent here in northern NJ said the market is hot and buyers are coming out of the woodwork...who to believe
Real estate agents will never say anything but that.
"An 11.1% drop MoM - the biggest since July 2013."
Wow. The Tylers are 0 for 2 on data interpretation this morning:
http://www.forexfactory.com/#graph=57652
In July 2014, sales fell from 504K to 406K; a drop of over 19%.
Hate to see the Tylers lose credibility...
"There's never been a better time then now to buy a house."
Gee, that's all realtors say, 24/7.
Those property taxes will change dramatically (X 3 ) as soon as it sells for anything near asking price.
They're not buyers they're termites.
Was that the real estate agent with the chiclet teeth, the bleach blonde hair wearing the fuckme high heels?
maybe 25 years ago....now she wears 7 layers of make up
No it was the 50 year old version that you can't believe you have to look at and listen to her stupid shit.
Can she open a door and say this is a closet, all being done at the same time?
NJ's with buyers coming out of the woodwork? Sounds like parasites come out of the woodwoork which is pretty much what is left in NJ. The state is a high tax third world hell hole. It is a bit like gaza with dual shitizens running the police state.
Ever notice the NJ state police uniforms look like the SS or SA storm troopers?
..who to believe
Not a Real Estate agent, that is for sure!
My unattached garage is bigger than that house.
But like uh Dude, I mean you know like uh lookatda party lights and hot tub
(giggling uncontrollably)
Come to think of it, BOR, so is mine, but I built it myself, and it does not have a bathroom. Has attic storage though.
Hahahahaha! The fucker that is listing it keeps jacking the price up every couple of days...cause you know, that's how one sells a home when it isn't selling. Can't blame the guy, he's only using the Fed's/NYSE/CME/CBOE/BATS pricing methodology.
Also, I'd buy this http://www.zillow.com/homedetails/5049-W-Point-Loma-Blvd-San-Diego-CA-92107/16960849_zpid/ before that one. Shit, get 50% more footage for about the same price/sqft.
Not bad for a $1100.00 a square foot. At least the taxes are cheap. If this wasn't California taxes would be at least $12,000 a year instead of $2,400.
My choice would be a cardboard box, closer to the beach. That way if the neighborhood turns I could just move. Anyone who buys that has to be a chump.
Must reach new index highs.
Im in the Norheast and they are building in my area like its a Chinese ghost city. Going to be some good deals real soon I guess.
Builders build, that's what they do. I have several friends that are builders. The money is cheap but the list of folks looking to buy is dwindling. We still get folks from high cost areas looking to relocate to a "relatively" less expensive place to retire. However, lots of inventory on the market. My point is don't expect builders to stop building until credit freezes up during the reset. What the hell else are they going to do? Stay at home and self study for a different profession? This is part and parcel of the massive malinvestment we see as a result of cheap money and tax laws written to encourage homeownership (AKA getting folks to take out massive loans so banks can fleece you). Lots of pain coming
tick tock mothafuckers
Dude, that's Law's of Physics line. Had to junk you for the steal.
Upped you for your respect, but I have to let you in on some Hedge history here.
"Gold, bitches" was chumbawamba's line. HE was the one who started that meme, years back when the Hedge was young and honest, and now it's become a Hedgian classic. (Only adding the Gen Whyish "-z" on the end, which I don't use b/c I find "z" for "s" as stupidly trendy as "k" for "c". YMMV, whatever.)
The fact that someone else is using Law of Physics' line, is evidence that LOP has started a Hedgian meme. There are no copyright parasites (erm, I mean "attorneys") here, so a meme can actually be spread around, get some traction, and give the writer's idea some influence. Which is the whole bloody heart & soul of writing. Maybe if LOP dies (may he live forever) then his meme will live on after him. It's what every writer dreams of.
Let LOP be a part of Hedge history as chumbawamba is, don't deny him his legacy. I say, use tick tock motherfuckers early and often, and when you do, raise a glass to LOP. And if you don't have a glass when you're typing, go rectify that.
yeah, but desperately trying make a "Hedgian Meme" (nice) is annoying. I like Laws of Physics posts, but I don't need to read "same as it ever was" on every post, or now "tick tock motherfuckers" from these other guys. If the comment is worthwhile you won't need a tag line. The nostaliga for Chumba and Trav777 is misplaced, those guys were as annoying then as they are now when they pop back up. Posting a bunch of racist shit under a fake name isn't some badge of honor.
ZH memes:
gold bitchez
BTFD
BTFATH
Since Lehman
Corzined
Deer in the headlights pic
And it's gone (re-meme)
Anyone want to add a few?
I make $7 per month working part-time renting out my sister online...
ha! they should have given that guy posting rights! Hedgeless overstepped when his wife starting posting, lol.
Das rayciss. We overstepped some folks. (OK, even I'm getting sick of the Meme meme now.)
Joos. (And other racist variants...)
Obummer and variants.
Hitlerary and variants still coming. (Keep 'em coming!)
Original credit goes to totus, but the "we (insert your word here) some folks" meme has some real staying power.
Nooooooooooooooooo! Not our precious New Home Sales! Take anything but that! Damn you Strong Economy! Damn you to HELL!
OT: So apparently having idiotically strong crude builds means that price should go up, cause you know supply vs demand......one day the sheep may wake up and realize that commodities have been nothing but manipulated through the financially settled contracts volume vs actual physical supply/demand volume.
Give me an existing home over a new one anyday. The older (if maintained), the better, the caliber of masonry and carpentry common 70 years ago would be ungodly expensive today to achieve. So instead we get chinese drywall and flammable floors.
https://youtu.be/5bsAMSQ13bY
Doors like this one.
That's why when I had to recently buy (life situation, not Fed induced), I found one built in the late 60's with real oak floors. Bastards I bought the house from had carpet over it...idiots.
My house upstate, which I bought in foreclosure, overlooked an ugly hill full of bushes. I dug it it all out and found a half an acre of original stonework from 1940 that framed the whole house. Decent stonework costs $20/square foot now. And the original stone fireplace heats most of the house. These people weren't stupid.
What kind of deed did you receive at purchase?
it was a bargain and sale, but I got insurance on the title since it had been through so many hands. Wouldn't want Linda Green to get her hands on it.
That's good that it was a bargain.
Be sure to have a real estate attorney (ha!) look at it. Title Insurance usually means nothing. They exclude almost everything so you're basically buying a piece of paper.
Hopefully, your home's title was not MERSed previously.
Hopefully your current mortgage is not MERSed.
If the mortgage was "MERSed" I think it means that they separated the promissory note from the title (mortgage?) and proceeded to securitize then sell it. This has the effect of nullifying the house as collateral for the promissory note which means that it is very difficult to foreclose on the house for lack of performance on the note. Now I'm reading that folks being held in limbo (and residing in the home that was being foreclosed on while not paying the mortgage) in these foreclosures are being awarded title because the legal action has taken too much time. I'd say that maybe being MERSed is a good thing from the aspect of the homeowner?
my understanding is that MERS bascially just registers the title in the banks database instead of the towns, mostly to avoid the recording fees, so there are discrepancies between the two records. So MERS titles could be considered invalid by the town, who never received those records (and their cut) and thus won't recognize them. If you live in a MERS title property, it could be harder to get foreclosed on since the town disagrees with the lenders ownership. On the other hand, if you have a MERS title, the owner who is listed in the town records could theoretically ask for his house back even if you are making payments.
in legal theory you are correct
however the judiciary, except in RARE states like Florida or some on the East or West Coast, will simply have eyes glaze over listening to this argument. As a consequence you can consider yourself foreclosed.
Never underestimate the desire of a judge to remain on the bench, to never be overuled and to enjoy banker donations to his reelection campaign and 14 day complimentary cruises with people of his ilk.
Firstdivision; you should be grateful they did that. "Wall-to-wall carpeting" was all the rage in the 1960s and 1970s. It protected the floor for decades and you got a hardwood floor. Same happened to us; bought a 1961 home in 2009 and found excellent white oak under the matted old carpet. Tore it up, shined it up & it is beautiful.
Just make sure that if you have an older home and you want to insure it, you over insure it and insist on replacement cost. Nothing worse than losing your home and having the insurance company give you the shaft and say that "like kind" means they can rebuild with inferior materials.
About the time when FHA still required hardwood floors on 2 x 6 T&G subfloor, in stead of 1 & 1/8th ply on 4' centers...
But hey,,,,, it's C H E A P!!
and today, that is all that counts.
I'm so glad none of this can affect the price of my stawks.
This should send Gold futures soaring!
from 9:48 to 10:07 someone (probably one of those who can get away by simply paying fines or being above any scrutiny) took the trannies up 0.50% in a straight line, no downtick in between, while awful PMI data and new home sales data hit.
someone who doesn't care about risk, someone above risk apparently who can catch knifes and always win.
this is nauseating.
Between 9:48PM to 10:07PM, all the trannies in DC are setting up dates with congressmen.
Oh Thtop it...
BULLISH.... BTFD!
And with mortgage applications at 30 year lows I wonder who's still buying homes?
Bkackrock? Ahm ahm.
Cleveland fed head: "I don't expect much help from housing this year"
No shit. Who the fuck would want to live in Cleveland.
-Guy Who GTFO of that Area.
Hahahaha, fuck you NAR! Die housing industry, die! For the sooner you do, the sooner the reset will happen and we can get back to a real recovery. Hopefully absent the feral Federal Reserve and this corrupt government.
Feral Reserve. I like it. Thanx for helping us out with its real name.
Phwww, at least we are not looking at a worst fall since Lehman scenario here.
S.E. PA. The house across the street 250-300 K neighborhood has been empty for over 2 years. 2 other houses down the block could not be sold and after being empty for1-2 years each, were rented. Another house was sold on a "pay as much as you can afford" program.. Whatever that is. We saw some rebound in prices of about 10-20K depending on the appearance of the property. Other than that, this market never came back.
It is not the weather. Companies are moving out of the state and what is left is being offshored.
My niece just sold theirs in Palo Alto..had three offers on the first day..sold over asking.....the one they bought in Pallisades....had 8 offers over asking...must be hot in the ole droughty California...
Last couple of years the existing home sales were hot. This year nothing is moving unless their heavily discounted.
Unusual this time of year.
Early this year prices shot past the bubble prices. The math is no longer making sense. The wages still aren't there.
Exactly right. When wages go up at a measly 1-2% a year, housing makes no sense going up 10-15% a year. It is all speculation again and will result in yet another crash. Just wait till all of the resets on the HELOC's that were taken out in 2005,06,07 start to hit and everyones payments go up through the roof. Does that sound familiar???
All that matters is the monthly payment... not the price of the house. The biggest impact on monthly payments is the mortgage rate, followed by property tax rate and insurance premium. Mortgage rates declines have offset rising taxes and insurance costs. A rise in interest rates is all it takes to pop this bubble. That is why the Fed rate increase is always deferred and may probably never materialize.
Oh but this is so bullish! Go buy moar houses everybody! Best investment of a lifetime! Get a bank to front hundreds of thousands of dollars so you don't have to pay rent, nevermind the up front cost per interest and the fact that if you lose you job or have a different financial disaster you could lose you nest egg like SNAP!
A MUST READ for any ZHer -
The Coming Crash of the Housing Market (2005) -
http://www.amazon.com/The-Coming-Crash-Housing-Market/dp/B005M4ZD74
They should update that book with todays date. If my wages had gone up as fast as housing, then it would be sustainable. Otherwise, it is all Bullshit!
WINTER WEATHER