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New Home Sales Surges To Highest Since Feb 2008 As Northeast Spikes 87%
On the heels of yesterday's explosive (but not a bubble) Existing Home Sales, May New Home Sales printed 546k - up 2.2% MoM - (against expectation of 523k). This is the highest SAAR new home sales since Feb 2008. By region, the NorthEast soared 87.5% MoM (as historical outlier fabrications remain buried in the data) and The West rose but The Midwest and South dropped 5.7% and 4.3% respectively.
Notably, year over year... Sales by region are extremely mixed...
- Northeast 0.0%
- Midwest -14.3%
- South +27.3%
- West +27.3%
Charts: Bloomberg
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How many times were the home sales seasonally adjusted?
Best time to buy before global bond markets go bust and interest rates rise 50% in a week.
BULLISH
my realtor friends tell me it's dead. prices falling. no buyers. (NYC commutable, AAA)
Just eyeballing that long term trend line I think we'll regain the 2005 highs again by about 2084. And this is what passes for a "recovery" these days.
"Surge" just like the one you get when you flush the toilet.....
Extremely mixed? How can anything mixed be extreme?
Mixed makes perfect sense when looking at the two different America's both being driven by the same ZIRP and flat wages...the link highlights the entirely different worlds of South and West vs. old NE and MW...
http://econimica.blogspot.com/2015/06/us-population-and-housinga-tale-of-two.html
Article had the key word - OUT Lier historical data
RE sales (new and existing SFR) is very strong in the Mid-Atlantic States where my business is footprinted. Mortgage business is very strong.
NoVa
There's never been a better time to buy your next foreclosure.™
How true. I am seeing people baited into it all the time again. I guess everyone suffers from short term memory loss.
Bubble economics is all they know! Durable good and PMI down to new lows and housing is roaring? Bullshit!
I hear they're offering buy one get one free...
Some elitist group of property investors just had their request for some PR fulfilled so they can sell and get out.
It must have been due to the cold weather in the Northeast...
Since Lehman® ?
All that crooked wall street money is working... /SARC I can tell you in northern NJ they are building the most houses I have EVER seen. I don't know who is going to live there....as people are fleeing the disaster of a state. I guess you build them and leave the moronic taxpayer to foot the bill
Who can afford the property taxes there? Unless your a union management official or a government worker. You can buy a house in rural ag country for 5 years worth of property taxes in NJ.
Hot air and combustible gases.
Does no one remember 2008-2009?
@ Ebworthen, This time is different!! lol
Hey old man, that was so long ago let it go. That was the iPhone2 era. Get with the times.
Yes, of course. I remember that all too well. But, on the other hand, I even remember Glass-Steagall - and what is it good for?
Need moar credit? Move to Jersey. Completely sustainable "growth". </s>
Heard from Realtor friend May was red hot until the last week. Since then it has been dead across all price point houses. Hopefully it will pick back up...just enough for me to sell mine.
For those in the know, do you see what TPTB are trying to do here? get you to borrow and spend. They know the economy is in the shitter they know wages are dead in the water they know the home is the largest investment of the ( former ) middle class so what do they want you to do? borrow more of course.
And mortgage rates are still way to high for it to even be financially prudent to do so in my opinion.
Yes, it's just like last time, just with sales at about 50% of the bubble peak.
I drove by a used home dealer, and they're just stacking them behind the dealership. Homes lined up as far as the eye can see.
I'd really like to buy a chunk of land, don't think that now is a great time to be hunting for a deal - everyone thinks their house, property is worth what this market says. I don't really want to be the last buyer right now.
Didn't have the money to buy a house after 2008, figured it would be another 8 years of waiting, here we are. Stocks on all time highs, housing at decade highs...time to buy? I think not.
We bought a foreclosure about 3 yrs ago, sold our old place for more than I would ever have paid for it and never looked back. Looking at the listings around our area now, I feel bad for anyone moving in. But who knows, maybe I've just gotten too cautious lately, and it's a great time to play pull and prey. Everyone wins, and you never leave a heater....
I am doing the same thing. I will rent and stay on the sidelines until this unsustainable housing market crashes for a second time, then buy on the cheap.
You rent when you buy anyway.
We are seeing panic buying as prices rise and money is free.
There is a sense of panic / pressure in the purchase markets. As long as the 30yr fixed hovers near 4.00% then we will continue to see a somewhat healthy home sales market. Keep in mind that homes closing in May have loan locks that started in March / April when rates were much lower. With the 10yr going from 1.90% to 2.40% today, maybe July definitely August will see home sales fall off the cliff.
Another reason (to lessor extent) are new regulations that will change the Closing documents (HUD-1) and process. supposed to be pro-consumer but it is scaring the sh*t out of realtors. Was to be effective August 1 but got postponed at least two months. new regulations cam from Dodd-Frank law.
Refi's are gone.
NoVa
Good. Let the NAR get scared. They, along with the banks, are part of the problem. The have to keep the prices going up to ensure those nice 30K plus comissish's per house. Real Estate is just another speculative market.
Trickle down debt btiches. Funny how debt trickles down, yet not wage increases. Keep the Titanic on a straight course Obama.
I bought a foreclosed piece of land in FL for a song with homestead and ag exemptions. 26 acres and the property taxes - school, local, county - are $62 a year. No typo. I parked a 5th wheel travel trailer on it, put in a well and septic, and I have a great property all in for $76k and rent to the government of $62 a year. And it comes with a herd of feral pigs - I foresee target practice and lots of barbecue sauce in my future.
You just have to be smart about your choices, folks.