New Home Sales Disappoint As Median Price Drops Year-Over-Year

Tyler Durden's picture

After disappointing existing home sales (following a notable drop in homebuilder confidence), new home sales modestly disappointed in June (610k vs 615k exp) with a small downward revision to May...

 

(the 3rd downward revision in the last 4 months).

 

Perhaps more notable is the 3% drop in median home prices YoY following a big downward revision in May (from record $345,800 to $324,300).

 

Of course, homebuilders remain blissfuly ignorant of the actual state of the housing 'recovery' - with the biggest gap between hope and home sales ever...

 

And as the real estate market's data collapses, optimism remains...

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I am Jobe's picture

Geez. NAR must be bored. Americans will feel poorer in time as their home values will drop further. Future is bright.

Life of Illusion's picture

 

 

GOV buy moooooor  MBS.....cant have a real market now can we

 

WHAT A MESS

SeattleBruce's picture

No stock market.  No real estate market.  Certainly no precious metals market.  Real markets are not permitted.

corporatewhore's picture

I know demand for mortgages is down.  Mortgage officer keeps asking me to make an application.  Why catch a falling knife?

CJgipper's picture

Got a call two nights ago trying to sell me a new mortgage.  I told them I had a 30yr fixed at 3.75.  He told me, and I quote "We can do that."   Uh, yeah, but what about the fees retard?

Rick Cerone's picture

But confidence is so high!!!

Stormtrooper's picture

Wow!  610k new homes.  What are the banks going to do with that many homes when things go south and the debt slaves can't pay back principal and interest against the loan that was made to them with counterfeit money?

CJgipper's picture

They'll just print more money to cover them and let them sit and rot while the builders build more.

Slow Burning Rage's picture

I know it doesn't conform with the ZH narrative, but 600k new home starts doesn't keep up with replacement and population growth.  In fact, calling 600k a "recovery" is hardly truthful when you consider that it is only "recovered" to 50% of the volume delivered at the previous peak.  By my estimates, 900k is likely a healthy and balanced market, which leaves the housing market ready for 50% volume growth before it reaches the next peak.

CJgipper's picture

You're measuring transactions, not operational units.  No one is moving.  That's why it looks down.

0valueleft's picture

Just in case you were thinking about booking some stock profits and paying cash for for a home. Can't have a debt slave brake the shackles. They'll porage housing data until the fall.

Stay n stawks you serfs, use leverage if you have to. DEBT DEBT GREED GREED KILL KILL KILL KILL, this is a casino, not capitalism. 

Give Me Some Truth's picture

In most markets in America, home prices are falling. And It's been this way for a while now.

The "home prices are rising" meme seems to be designed to reinforce the myth that the economy is doing just fine.

 

innertrader's picture

ALL I know FOR SURE, is that house prices have been going up in my state for 8 years and that is including this year... so far.  Also, builders are cautous and there is only a 60 day supply of new houses.  I know, because I'm looking to sell and buy or build a new house and the new house price is beginning to get away from me, SO I've raised the price on my older house.  Now I'm considering putting in a new, 9 house addition and building on my own property, then sell the lots.  Also, I wouldn't really care if I only sold one lot a year.  Actually, that would be perfect.

There also seems to be some demand for the large lower end developers in the $150k 1100 sq. ft house on a postage stamp lot... mass produced in 300 house minimum developments.

IN the past decades I've been really good at seeing where we are in the housing market, HOWEVER, at this point in time, I don't have a CLUE!  ALL I know is that I do not want to get caught OUT of the market, to cover my a... should major inflation start.  The other thing I know, is that ALL the data being presented is un-trust worthy... to be polite!

 

SETH RICH!

EBERWEIN!!!

 

TRIUMPH with TRUMP!!!

Rebelrebel7's picture

Everyone knows that all markets are local. The local, state, and federal governments  are manufacturing false scarrcity by hoarding land. 

There is a drastic shortage of single family homes in many parts of the country.

Andrew Jackson created the homesteaders act releasing federal land. Unfortunately, the gold standard bankrupted many people across the country.