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New Home Sales Miss As Median Price Drops To Lowest In 13 Months
Today's data deluge continues with the latest New Home Sales in which we find that in October a total of 495K new homes were sold, of which just 146K completed (the lowest in the past year), 172K under construction and a whopping 177K houses sold which have not even been started - this was the highest print since 2007. Still, the headline number, while rising from last month's downward revised 447K missed expectations of a a 500K print.
As the chart below shows, new home construction has plateaued and has been in decline ever since February of 2015 when it posted its post-recession peak of 545K. But what is more troubling is that the median price of new homes tumbled from 307,800 in September, or the highest in the series history to just $281,500, the lowest in 13 months!
In other words, either the series is quite inaccurate or there was a dramatic change in buying behavior in the last month (when all that was bad was blamed on warm weather).
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What about the FHFA thread? I am so confused.
This series is so unprecise that the current number should be taken with a lot of salt.
true for all census bureau data .... nobody there gets paid to be accurate when lies will do just fine.
Not entirely true, their building permits are pretty tough to fudge because it's largely hard data. But new home sales is pretty much a joke, tiny sample size (survey of 1 in 50 single-family permits in 900 of 20,000 permit issuing places), and then it goes through the seasonal-sausage-making of X13-ARIMA-SEATS.
So much good news this morning...should be good for 200+ point rip higher today.
Correct. In the last 10 mins in anticipation of Thanksgiving sales.
Headline from Fox Business:
"New Home Sales Rise 10.7% in October"
and ZH:
http://www.zerohedge.com/news/2015-11-25/fhfa-reports-home-prices-rose-f...
You may now choose any version of the "truth" you want... so your Cogn-Diss doesn't act up...
There has never been a better time to raise rates.
I'm starting to suspect that we are being bullshitted, about everything...
What was the clue? the fact that every report is either inconsitent with a previous report or that none seem to follow any resemblemce to the state of the economy?
Entry level homes are so passe. Don't they choose to live in tents under the freeway anyway? Only build highend homes since only the 1% matters.....
Businesses support the 1%, government can support the ex-middle class and the rest of the 99%
The Federal Reserve has artificially kept prices high. Their meddling in the free market distorts reality.
"reality" what an interesting word you use there.
Save foreign investors (AKA money launderers), there are few that actively want to buy USA real estate. Why would they? With 2-3 MILLION foreclosed homes still held by financials from the last housing crisis, prices can only head down.