Americans Bought The Most New Homes In 8 Years Just As The Median Price Hit An All Time High

Tyler Durden's picture

There was a lot of headscratching in today's New Home Sales reported released moments ago by the Census Bureau, according to which there was a whopping 619K new home sold in April, up from the upward revised 531K (was 511K), and smashing expectations of a 523K print, driven by a surge in Northeast home sales which soared unexpectedly from 36K in March to 55K in April, a completely unexplained 53% spike.

 

The head-scratching is most prevalent among the 75 economists who attempted to forecast this number... but missed by 17 standard deviations!!

 

Here is what drove the overall surge: a clearly "goalseeked" number resulting from a massive surge in Northeast sales, one which will be promptly revised lower next month.

 

Finally, adding fabricated data insult to intellectual injury, we learn that Americans - the same consumers who according to recent retail data are loath to even go out and buy clothes - rushed out to buy new homes in the month when the median new home sale price just hit an all time high of $321,100.

Ok Janet, we get it, you want to telegraph a rate hike, but surely there are more subtle and less entertaining ways to do that.

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TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) May 24, 2016 9:17 AM

The quickest path to wealth is homeownership.  All aboard, we're all the captain now!

Rate hike, Summer 16

Looney's picture

Deja vulva, all over again!  ;-)

Looney

OrangeJews's picture
OrangeJews (not verified) Looney May 24, 2016 10:17 AM

Everything is wonderful!  Everyone, spend everything!  We are saved!

The Saint's picture
The Saint (not verified) Looney May 24, 2016 10:45 AM

Yup, Obama has instituted sub-prime loans again and is putting pressure on the banks to make the loans.  This POS is just a complete moron.

CPL's picture

Bush did it just before leaving office to fuck with Obama.  Obama is doing it just before the end of his term to fuck with the next guy.  It's how the business is done now.

Doubleguns's picture

Maybe "Chinese" future Americans. 

ParkAveFlasher's picture

Consolidated Flipping Inc., RE Price Protectors LLC, and Well-Funded Americans For Tax Revenue Maintenance are all American organizations.  Say Yes! to decay and degradation!

Now line up suburban sheep, to pick up your unpayable mortgage and your football jersey. Your heroes all have big biceps.  Your celebrities will send you personalized pictures of their body parts via twitter.  Your children's image will be recorded from Facebook to ease their camera recognition.  This message is overbudget.  END 

EllaDara's picture

We’re constantly told ours is an ownership society in which owning a home is the foundation of household wealth. The concept of ownership may appear straightforward, but consider these questions:

1. If the house is mortgaged, what does the homeowner “own” when the bank has the senior claim to the property?

2. If the homeowner owes local government $13,000 a year in property taxes, what does the homeowner “own” once they pay $260,000 in property taxes over 20 years?

The answer to the first question: the homeowner only “owns” the homeowners’ equity, the market value of the home minus the the mortgage and closing costs.

In a housing bubble, homeowners’ equity can soar as the skyrocketing value accrues to the homeowner, as the mortgage is fixed (in conventional mortgages).

But when bubbles pop and housing prices return to reality-based valuations, the declines also accrue to the homeowner’s equity.

http://www.looneymarkets.com/bottom-line/in-the-loop/dear-homeowner-if-youre-paying-260000-in-property-taxes-over-20-years-what-exactly-do-you-own/

ToSoft4Truth's picture

Where do you live 'rent' free - state park? 

OrangeJews's picture
OrangeJews (not verified) de3de8 May 24, 2016 10:24 AM

Funny thing, I was thinking of doing a houseboat on Lake Mead because of no property taxes on houseboats but then thought, shit, maybe in like 10 years they WILL start charging me for laying on the dirt that used to be water.

Life of Illusion's picture

 

 

"Americans Bought The Most New Homes In 8 Years"

Americans financed the most new homes in 8 years as FED PURCHASED MOST MBS OVER 8 YEARS

 


edotabin's picture

There should be ZERO property taxes on primary residences. You either own something or you don't.

TBT or not TBT's picture

Get rid of public schools and your halfway there.  Deport illegals who show up at county subsidized hospitals and you cut off half the remainder.   

AGuy's picture

FWIW: I am not seeing any homes getting sold. I see nearly as many homes for sale as I dd in 2008 (on my daily communte). Most of the homes have been on the market since last year. I think out of the 40+ homes for sale, I see on my daily commute, only 3 have sold since last year. Granted, my own personal observation may not apply to all of the Northeast.

Question: Has anyone else see homes getting sold in there location?

 

 

 

Hohum's picture

Is that seasonally adjusted?

StackShinyStuff's picture

Double seasonally adjusted

nibiru's picture

Triple seasonally adjusted! We got Triple, who will give more...

Seasmoke's picture

Must by why all that Gold is being sold in May. To buy houses.

nibiru's picture

Look at the other side of the deal - must be why Chinese are buying all that gold and buying all that houses: http://independenttrader.org/the-power-of-the-sino-russian-alliance-part-ii.html

SpanishGoop's picture
"Americans Bought The Most New Homes In 8 Years Just As The Median Price Hit An All Time High"

Yup, leave sound investing up to the Americans.

 

Doubleguns's picture

The report is a govt report from the sensless bureau. Might be a "tell" there. Time to BS this market up!!!! 

Seasmoke's picture

Good thing no one is buying all those empty bank owned fraudclosed houses. That would be bad for the new houses in the Northeast.

Theres never been a better time to buy a brand new house. Fucking frauds !!!!

jamesmmu's picture

June rate hike on?

bada boom's picture

If the market goes up much more from here, why not a .50 basis hike in june.   This is crazy.

buzzsaw99's picture

Am I in my cabin dreaming?
Or are you really scheming
To take my zirp away from me?
You'd better think about it
I just can't live without it
So please don't take my zirp from me

[/GFR]

PPT Inc.'s picture
PPT Inc. (not verified) May 24, 2016 9:23 AM

Weather? Oh, I forgot- data can be claimed bullish. Must reflect rising wages.

financialrealist's picture

conversion of paper assets to real assets...for those who can...

gatorengineer's picture

A 325 with 10 percent down is an 1800 a month payment.  So using the old 1/3rd rule that would be 65k in income....Doesnt sound bad, if you dont have utilites, healthcare, car payments or groceries to contend with

j0nx's picture

325k in my area would buy you a 2 level TH in an illegal alien/section 8 infested hood. We are miserable in this rental but have been priced out of anything decent that's not in one of those hoods. Pay raises simply have not even come close to keeping up with the cost of living in the No. Va. area. My frustration meter is maxed.

de3de8's picture

325 around here buys a small lot, big lots 500

tarsubil's picture

I'm waiting for things to roll over and then I might buy. Unfortunately for you, I can see the DC area not really rolling over with all the government money.

You need to get out while you still can.

FLHRS's picture

Before the LBJ era DC used to be an inexpensive area inhabited primarily by lower wage civil servants.  Now 7 of the most expensive counties in the nation surround that cesspool, inhabited by over paid bureaucrats, politicians, lobbiests and the defense industry.

The Real Tony's picture

Where I live 325K would buy an add on two car garage if there's room for it. 325K wouldn't even buy a studio apartment.

Prophet of Rage's picture

Same here in the area where I am in the NW. You can get an 1100 sqare foot shack that is 30 years old for $350k. This is if you want to be close to anywhere that has decent employment prospects that is. For anything 1500 to 2500 square ft, you are talking 350-600k.

I just don't get it. What normal family (even with 2 incomes) can afford this? This is an $1800-2800 mortgage per month (if you can afford to put 20% down that is). Oh and we still havent even paid the utility bills or ate yet, much less bought clothes for the kids..

But the prices just keep going up up up...... When the fuck did houses become a means of making money instead of a means of providing shelter and raising a family?

I really hope this thing ends. Soon.

MASTER OF UNIVERSE's picture

New Housing Starts of Multi-Family Units is not the same thing as Single Family Units. The new metric signifies a major downsizing from Single Family Units to Multi-Family Units which leaves the Single Family Units even farther down YoY. In brief, the so-called 'Capitalists' have moved the largest money maker in the history of the USA to a Pinko-Commie Socialist dream of Multi-Family Units in the Socialist paradise of the not-so-United States of America. Bottom line is that the trend ain't your friend if you are on the receiving end of the downsizing.

SERReal1's picture

Let's party like it's 2006 all over again. Houses for everyone!

Guru1294's picture

Seems to me as if a lot of Americans were possibly pressured into buying their dreamhouse for the "sweetest deal of their lifetime" at these low interest rates. You MUST buy these houses now, as interest rates will go up next month no???????? and then when rates dont go up next month, I will be laughing my ass off at all these poor shmucks. Either that, or somebody with a lot of money they dont know what to do with bought all these houses expecting to sell them for a higher price.. Highly doubt its the second one...

agstacks's picture

I bought a house in the Northeast this past month.   $147,000.  Cheaper than my rent (less maintenance). While the hig end is in bubble land, the lower end still has lots of bargains for those looking to buy.  Hoping to one day settle the mortgage with some rolls of ASE's. 

j0nx's picture

Well you sure as shit didn't buy it in my neck of the northeast. 147k wouldn't buy you a 500sq ft efficiency condo in the ghetto here in the northern va. area. I told my wife 3 years ago after we sold our house it's gonna crash soon honey and then we can swoop in and buy one for pennies on the dollar. We can rent until then. Since then shit has gone up by 20% with no signs of letting up and we are still stuck in this disgusting rental with $800-1000 a month in healthcare premiums and copays bleeding my ass dry. Now I tell her we need to wait until after the election to see if Trump sweeps out all the rift raft and gets rid of the bloated federal salaries propping this shit up. If not then there will be no 2nd crash, at least not in this area.

Newbie lurker's picture

I did the exact same thing here in So Cal, only I sold this past Sept. I'm waiting for the crash but shit is still just going up. To the moon!

I want to leave the state but my job pays 250% more here and homes aren't 250% less elsewhere. At least in places I would want to live...

No wonder all the WASPs are super depressed in this fucked up time in history. I'm realizing more and more the TPTB can hold out considerably longer than I can stay solvent.

And then there is Mrs. Lurker always rambling about being close to family, blah blah blah.

mcl2177's picture

People don't buy homes they buy mortgages they think they'll be able to afford.

besnook's picture

higher demand means a higher price. i think that is the way it is suppose to happen, isn't it? new home sales are still half what they should be in a healthy economy especially considering the sales rate should be much higher as 90 million millenials come on line.

Paul Kersey's picture

Americans have a debt-serf mentality, so they are unconcerned with house prices. All they care about are the monthly payments. And, with the lowest interest rates on record, payments are down, even while financialization has driven prices up.

Need more proof? Then just look at all the $50,000 pick-ups that being financed over 8 years. With 76% of Americans living from paycheck to paycheck, the future, of those who have leveraged themselves in that group stuck with trillions of dollars in mortgages, auto loans and student loans, does not look good.

VA mortgages and USDA mortgages require zero down payments, and FHA mortgages require only 3% down. As economist Herb Stein once said, "If something can not go on forever, it will end".

Shed Boy's picture

It's not "Americans" buying those homes. It's Chinese, Indians, Brazilians. Americans are tapped out and most don't have clean enough credit to get back in the game after the last home flipping game ended.

TheRideNeverEnds's picture

Recovery summer VIII

Pasadena Phil's picture

"Seasonally-adjusted and annualized." Why not just give us the actual numbers? What is worse, fear that unadjusted numbers mislead investors or knowing that the numbers are being manipulated for political reasons?

Nobody For President's picture

Meanwhile, more young adults live with parents than with partners:

http://www.bloomberg.com/news/articles/2016-05-24/more-young-adults-now-...

So how many of these just bought high-priced homes are gonna be rentals?

 

Skeeterworborton's picture

All homes purchased by .gov for illigal imagrants from the middle east.