New Home Sales Plunge Most In 8 Months Following Sharp Downward Revisions; Median Home Price Tumbles

Tyler Durden's picture

Despite exuberance in existing home sales, new home sales just printed 551k SAAR - missing expectations for the first time since Oct 2015 - sliding by the most since Sept 2015. With the last 3 months of exuberant increases - to 8 year highs - now revised drastically lower; and median prices tumbling to the lowest since June 2015, the picture of the US housing recovery is considerably less rosy than before... time for a rate-hike?

This is what we said last month when new home sales soared to 8 year highs...

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.  

And now this happens!!

 

With sales dropping the most in 8 months...

 

Even with prices being slashed to 10 month lows...

 

Charts: Bloomberg

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Life of Illusion's picture

 

 

and all MBS purchased by the FED 

sorry FED not working

Joe Cool's picture

There's another one of those insane bizzaroland charts again...Man there's a lot of those these days!

Dr. Engali's picture

Never smile at a crocodile. Never tip your hat and stop to talk a while.

 

Aubiekong's picture

Dont worry with seasonal adjustments next month can be any number they want...

onewayticket2's picture

it's an election year.....the numbers are going to get really good this summer.

Aubiekong's picture

Having a down month just before you seasonal adjust up makes the increase look so much nicer...

Hohum's picture

How can that be?  The numbers were so good last month!  /s

snakehead's picture

Bloomberg: HOUSING AFFORDABILITY SOARS

FreeShitter's picture

Here in Texas, home prices are astonomical....300k minimum for a decent home (1500 sq/ft) in a safe area/hood. 150k for a shitbox that lands you in the bad neighborhoods with grafitti. 700/month for apartments that you need an AR-15 just to check your mail. Austin, Houston, Dallas.

Arthur Schopenhauer's picture

I live in the Houston area and the only reason I would need an AR-15 is to hold it on you while you stand on a streetcorner and loudly proclaim to everyone who passes by that you're full of shit.

Homey Da Clown's picture

Yep. Same in south florida.  Under $300k and you live amongst the crackheads for the most part. Want a nice house in a decent neighborhood with good schools? Expect $400k and up .

bada boom's picture

Don't worry, after Britain votes to stay in the EU, the worries in the US consumers will be relieved and will by homes like mad. /s

steveharless's picture

Sales are still brisk in Las Vegas -The median sales price of a non-distressed home was $195,000. The median sales price of a foreclosure home was $160,500, or 18% lower than non-distressed home sales.

www.ViewLasVegasRealEstate.com

The Real Tony's picture

I guess the Chinks piled all their money into Vancouver and Australian real estate rather than Seattle and San Francisco.

jtmo3's picture

Ah, I was wondering why the stock market went full retard today. Now I know.

blown income's picture

Lafayette LA 

 

 

1600 sq ft 278k on postage lot no side walks no Nutting 

 

U kidding me 

 

Oh that's right USA rural loans!

 

Foward!!

blown income's picture

Lafayette LA 

 

 

1600 sq ft 278k on postage lot no side walks no Nutting 

 

U kidding me 

 

Oh that's right USA rural loans!

 

Foward!!

NEOSERF's picture

So taking last month (and every month's it seems) -5% revision and applying it to these numbers then 551K will really be 523K...I have an English degree and can figure this game out..

Houses Depreciate's picture

-Record Low Housing Demand

-Record High Housing Inventory

BandGap's picture

My ex has the old homestead for sale. She won it many years ago when we parted ways.

This news break my heart.

S Spade's picture

How can this be, with the OTHER market at near all time highs...

 

ans: democrats fixed it, future generations will mark the period as the big fix

Lostinfortwalton's picture

An article in the WSJ today said that sales of EXISTING homes is at an all time high. A lot of people prefer an older home. Mine was built in 1962 in central Virginia by people who actually cared about what they were doing.

Houses Depreciate's picture

Yet the reality is housing demand is at 20 year lows and falling. See for yourself.

 

http://1.bp.blogspot.com/-0q8fIAsczFk/VUANHEhSbnI/AAAAAAAAjRs/oANwXOUviG...

Expat's picture

I don't have figures for median house price (this graph is new homes) but the long term average median house price to median household income is about 2.2.

Median household income is about 52,000 so that implies a median house price of about $115,000.  If you take an alternative 2.5 ratio, you get $130,000.

Of course, prices can do whatever they want for an extended period of time.  We call this a bubble.  It all boils down to what people can afford.  Half of all Americans can afford a house that costs less than $130,000.

Ok, now that I have caught my breath after all that laughing, let's ponder if this is possible to maintain.  In reality, the median price is creeping up as median income households and below are simply squeezed out of the market.  So now the median home price is tending toward the average price which is skewed by gazillionaires and ZIRP.  Meanwhile the serfs are stuck with renting unless they can get a fresh NINJA 130% mortgage.

It'll end in tears...our tears.  Goldman and JP Morgan will shed tears of joy as they once again fuck over everyone they can find and get bailed out as well.

It makes one sympathize with ISIS in many ways.

PTR's picture

"It's a great time to buy a home!"  -NAR