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New Home Sales Rebound Despite Median Price Rising To Just Shy Of All Time High
Following last month's disappointing slump to only 481K new home sales in March (now revised to 484K) which was the biggest drop in nearly 2 years driven by a collapse in Northeast transactions, according to the latest new home sales data by the Census Bureau housing rebounded back over 500K, printing at 517K thanks to a 37% sequential jump in Midwest new home sales, which rebounded from 57K to 78K, even as sales in the Northeast continued to decline and even the West saw a modest drop.
Curiously, while there are double digit annual increases from April of 2014 across 3 of America's 4 housing regions, the Northeast continues to deteriorate, and is now down 19% from a year ago.
The total sales figure represented 4.8 months of supply, down from 5.1 the month before.
However, as the long-term chart shows, new home sales have a long way to go before they regain the levels seen during the last bubble.
Yet while the actual number of sale transactions has a long way to go,the median price rose once more and at $297,300 per new house, is not only the highest of 2015, but just shy of the record highest median price seen of $302,700 hit in November of 2014.
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Time to ban cash, implement negative rates and keep that bubble going, explained here.
If even 10% of the country could tell the difference between median and mean, we wouldn't have these problems.
Looks like the rate hike scare is working.
Looks like all of that "Free Money" is looking for a home....
Median or mean would make little difference in this case.
If 1/2 the sales are Chinese billionaires paying cash for mansions; that would artificially raise the median as well as the mean.
http://cafferyrealestate.com/rets/LA/YOUNGSVILLE/70592/9915933/220-PALFR...
A DR Whorton home in Lafayette la 1245 sq ft on less than a 4k sq ft lot Mexican built to bare minimum code
popping up like mushrooms..
Thats what $169 a sq ft will get ya
Fuck That ...this whole area is energy/oil related , all the big players ..and they just keep building..
Are there numbers for the AVERAGE sales price? Median allows the high end transactions to skew the data really bad. Flipping a million dollar home for 2 million makes a big difference in the median, but wouldn't move the average much because of the much larger number of smaller-dollar transactions.
Answering my own question here.... yes, there is:
https://www.census.gov/construction/nrs/pdf/uspricemon.pdf
The average sales price is HIGHER than the median ($341K average vs. $297K median), but increasing at a slower rate. From Jan 2012 through now, the median sales price is up about 34%. The average sales price only 28%.
So, I'd say theory confirmed.
You've got that backwards. The median is less affected by outliers than the mean (average). You can multiply the highest data point in a set buy a million, and the median is the same.
Along with the standard deviation ans skew while we're at it..
Return to mark to market and let me know how things work out...
To be adjusted downward soon...This message brought to you by the NAR.
wow the median chart completely differs from the case shiller index. is the latter a nwo scam?
My Denver home goes on the market any minute now. I'll probably have an offer by lunch if not sooner. People are seeing new listings and scheduling visits within minutes lest they get into bidding wars. Most will just pay ask and close the deal quickly and quietly. The poor bastards that buy my 4 bedroom suburban home will have overpaid by as much as $200K (possibly more) based on what it's actually worth. Take it out of CO and it's worth $200K in the Midwest or Southeast. I'll probably sell for close to $450K. It's actually embarrassing to take that kind of money off stupid people but this is capitalism at its finest. lol.
Denver is blowing an epic bubble and when it pops it's going to be something. Thousands of people pouring into the Mile High City every day, most of them don't have a clue what they're going to do but they quickly discover that it better pay pretty fucking well because their $2000/month shanty rental is about to fall over with the next 30+ MPH wind gust. Everyone wants to live here because it's "beautiful" but most won't get to take advantage of 1/10 of what it truly has to offer because they'll be grinding themselves to dust to pay mortgages and car registrations that are the highest in the nation. Good luck to them. They're going to need it.
You should make them overpay by more. If you're selling your house on Day 1, you're not asking enough.
I could possibly squeeze more out of them, and depending on the situation, I will but at this point I'm just satisfied with the entirely unjustifiable markup as it currently stands. Another 10 or 20K would be nice to be sure but I'm also ready to be done with CO in a big way. Lived here my entire life and ready for something new. The mass influx of people has genuinely ruined CO as far as I'm concerned. This is Hillary country now....
>This is Hillary country now....
All the more reason to kick them in da nuts and get another $50 to $100K out of them.
Back just before housing bubble #1 burst, I sold my 2bd, 1br, 910 sq ft (that includes the garage floor space) in CA. for $430K. Paid $158K for it, 12 years earlier... What I bought with that money in the Midwest was incredible.
Ridiculous then, ridiculous now. Nothing changes.
Standard Disclaimer: Location is bullshit if you never get to enjoy it.