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New Home Sales Miss By Most In 20 Months

Tyler Durden's picture


But, but, but... the housing recovery. Was demand pulled forward? Could it be that warm weather encouraged people to venture out of their igloos? It appears so as new home sales plunge 8.4% MoM on expectations of a rise of 0.7%, days after the already fudged NAR data showed a huge miss in existing home sales as well. This is the first miss since October of last year and the biggest miss of expectations since October 2010. This is the biggest absolute drop since January with the actual number of new homes sold, not annualized, in June was 33,000 - of which a mere 1,000 was in the NorthEast. Median home prices also fell appreciably. as we note that of the 33,000 total new houses sold in June, 11,000 have not even been started, and 11,000 are still under construction and the number of homes sold at a price over $750,000 was less than 1,000.



Median home prices down 3.2% and are now the lowest since January:


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Wed, 07/25/2012 - 10:11 | 2649042 Starving Artist
Starving Artist's picture

Bloomberg Epic Fail, Wednesday Morning Edition


Wed, 07/25/2012 - 10:14 | 2649060 zero19451945
zero19451945's picture

I clicked on that link and the breaking news headline directly above it states:

"Sales of New U.S. Homes Unexpectedly Fall"

The financial media are the worst kind of scum. You have far more to fear from these cockroaches than some dope in a cave with an AK-47.

Wed, 07/25/2012 - 10:20 | 2649088 camaro68ss
camaro68ss's picture

But I was told by zillow’s  Sr. economist yesterday that we hit the housing market bottom… how could this be? 

Wed, 07/25/2012 - 10:22 | 2649101 hedgeless_horseman
hedgeless_horseman's picture



Can we have our QE, now?

Wed, 07/25/2012 - 10:24 | 2649113 Temporalist
Temporalist's picture

Demand pull?

Ben B: I demand you pull my finger.

Wed, 07/25/2012 - 12:07 | 2649641 goldfreak
goldfreak's picture

too busy pulling his putz

Wed, 07/25/2012 - 13:13 | 2649912 TrainWreck1
TrainWreck1's picture

I am unexpectedly surprised!

Wed, 07/25/2012 - 11:08 | 2649386 Alpacanio
Alpacanio's picture

We will get QE grasshopper however, it will do little to nothing.

Wed, 07/25/2012 - 10:28 | 2649143 otto skorzeny
otto skorzeny's picture

you think that the elititst marxist little hebe that owns bloomberg and wants to tell people how much soda to drink is going to print the truth? and i thought my 3 and 4 year old are naive.

Wed, 07/25/2012 - 11:01 | 2649338 JR
JR's picture

Bloomberg has literally spun out of control. Financial lies and support for the banking cartel is one thing but pop culture obscenities are another. Bloomberg Businessweek has become a rabid comic book embarrassment to all forms of printed material.

The latest giant hit piece on Mitt Romney (July 16 – July 22 issue) features an amateurishly drawn cartoon-like figure of Jesus on the cover blessing the Mormon church’s business enterprises:  “And thou shalt build a shopping mall, own stock in Burger King, and open a Polynesian theme park in Hawaii that shall be largely exempt from the frustrations of tax..."

The two kneeling Mormons, with Jesus’s hands on their bowed heads, say “Hallelujah.”

The cover story‘s inside headlines read: “Latter-day Lucre” and “Holy Holdings,” mocking Jesus with a drawing of the traditional praying hands with hundred dollar bills extended between the hands.

Credit for the cover artwork goes to Steve Caplin.

Wed, 07/25/2012 - 11:12 | 2649407 Old Poor Richard
Old Poor Richard's picture

Whoa.  I just looked at front page.  The Politics "coverage" are all hit pieces against Mittens.  Looks more like the Daily Kos or HuffPo than a business publication.


Wed, 07/25/2012 - 11:25 | 2649460 DosZap
DosZap's picture

The cover story‘s inside headlines read: “Latter-day Lucre” and “Holy Holdings,” mocking Jesus with a drawing of the traditional praying hands with hundred dollar bills extended between the hands.

Credit for the cover artwork goes to Steve Caplin.


Ok, that's it!

Time to go full bore Islamic Jihad!(Cue music pls)

They Cannot insult the Saviour and Lord of all humanity!.

Death to the Infidels!,they must be punished!

Wed, 07/25/2012 - 12:30 | 2649754 JR
JR's picture

The point of my comment is that Bloomberg is a combination financial brand name and New York political mouthpiece.  It’s an election year and one of the candidates is a Mormon and this is an extremely amateurish attack, not on Mormonism, but on the symbol of the Christian faith.

Am I to understand that this amateurish cartoon and incredibly biased information about the Mormons finds you in support?

Persecution is not involved. Obviously, this magazine will not suffer any legal repercussions for its coverage. It would not be the case, however, if Judaism or the state of Israel was the subject of the mockery. Because advertising bans and news conferences from Abe Foxman would follow in mere days following the publication, and political repercussions would be next for public officials who refused to offer their criticism.

Obviously, Bloomberg has no fear of Christians; but, obviously, Christians should have a fear of Bloomberg.


Wed, 07/25/2012 - 10:17 | 2649078 Village Smithy
Village Smithy's picture

Bloomberg seems to be taking over the number 1 shill spot from CNBS. Maybe Michael is worried about his portfolio.

Wed, 07/25/2012 - 10:11 | 2649046 LULZBank
LULZBank's picture

Still as good as September 2010 Bitchezz!!!

Wed, 07/25/2012 - 10:12 | 2649048 SilverTree
SilverTree's picture

~Home is where you hide your PMs.~

Wed, 07/25/2012 - 10:12 | 2649051 fonzannoon
fonzannoon's picture

I just looked at my house on Zillow and laughed so hard. I then looked around and decided how much I love my neighborhood and would never, ever want to leave. These thoughts occured to me freely and were not influenced at all by the price of my home and the fact that I no longer have a choice. Yup.

Wed, 07/25/2012 - 10:32 | 2649168 DeadFred
DeadFred's picture

Your feeling of being glued in place amplified millions of times over is why the country can't get out of the slump. There is so much sludge in the gears from overleveraged positions that can't be unwound that the machinery is slowing toward a stop. Haven't heard a single feasible plan yet that would get things unstuck.

Wed, 07/25/2012 - 13:45 | 2650007 JohnKozac
JohnKozac's picture

What does "sold" mean? Are these merely more zero down houses that add to the massive underwater pool? How many of these sales involved 20% down, a sign the buyer can actually afford the house?


My guess is 5-10% of these 'buyers' will default wihtin 3 years sticking the FHA with more losses and inventory.

Wed, 07/25/2012 - 10:12 | 2649052 midtowng
midtowng's picture

Well, with the younger generation getting all those great paying jobs and ridding themselves of all debts they'll be buying McMansions in no time at all.

Oh wait. Maybe not.

Wed, 07/25/2012 - 10:13 | 2649054 txsilverbug
txsilverbug's picture

Housing market?  What market?

Wed, 07/25/2012 - 10:39 | 2649228 duo
duo's picture

you mean a market with price discovery, no govmt subsidies, no tax incentives, no supressed interest rates, non-fudged statistics, and brokers and agents that have your best interest in mind?

Wed, 07/25/2012 - 11:21 | 2649433 DosZap
DosZap's picture

DFW new home sales up 15% ytd.

Wed, 07/25/2012 - 10:15 | 2649065 surf0766
surf0766's picture

One step closer to the big print.

Wed, 07/25/2012 - 10:19 | 2649082 mess nonster
mess nonster's picture

C;mon big print! I'll participate in the manistream economy just long enough to pay off my student loans with the price of a loaf of bread and then go UNDAGROWNDDD!

Wed, 07/25/2012 - 10:42 | 2649251 duo
duo's picture

you want to unleash the consumer?  overnight add a zero to everyone checking/savings balance up to the FDIC limit, add two zeros to SNAP payments for a month, then sit back and watch the party!

Wed, 07/25/2012 - 11:29 | 2649470 DosZap
DosZap's picture

you want to unleash the consumer?  overnight add a zero to everyone checking/savings balance up to the FDIC limit, add two zeros to SNAP payments for a month, then sit back and watch the party!

Sure couldn't do anymore damage than they have done, and they would be hero's..........Oh, wait.......that would mean 4 more yrs of the illegal Kenyan/

Forget it, PASS

Wed, 07/25/2012 - 11:58 | 2649596 Totentänzerlied
Totentänzerlied's picture

Airdropping fresh stacks of $1000s with the Bernank's face on them (condolences to Grover) from black helicopters would be SO much cooler and just as inflationary.

Wed, 07/25/2012 - 13:05 | 2649886 RichardP
RichardP's picture

How is paying off debt inflationary?  My guess is most people would pay off debt if blessed with pennies from heaven.

Wed, 07/25/2012 - 13:19 | 2649931 viahj
viahj's picture

and then what?  the majority of people living paycheck to paycheck will suddenly become savers?  unloading the debt burden gives the sheep a little more pasture but it doesn't open the gates to consumer prosperity.

Wed, 07/25/2012 - 10:16 | 2649072 Jason T
Jason T's picture

The disintegration continued and there was no power great enough to stop it.  

Wed, 07/25/2012 - 10:17 | 2649074 Jlmadyson
Jlmadyson's picture

Goldilocks is back!

Wed, 07/25/2012 - 10:17 | 2649076 Temporalist
Temporalist's picture

This report is erroneous.  Home sales had a huge beat if you read the papers yesterday before the report so that is all that matters; "the markets" have both a huge beat and miss priced in.

Wed, 07/25/2012 - 10:37 | 2649212 Cast Iron Skillet
Cast Iron Skillet's picture

... " "the markets" have both a huge beat and miss priced in" ...

quantum market theory?

Wed, 07/25/2012 - 10:48 | 2649278 CH1
CH1's picture

quantum market theory?


Wed, 07/25/2012 - 10:24 | 2649114 surf0766
surf0766's picture

"My linkedin newsfeed" <<<<<<<<<<< there is your problem.

Wed, 07/25/2012 - 12:01 | 2649608 Totentänzerlied
Totentänzerlied's picture

The media bullshit blitz will continue until it's more profitable to print the truth, which will be on or around the 12th of Never.

Wed, 07/25/2012 - 12:21 | 2649714 Son of Loki
Son of Loki's picture

They can rent the boxes out to Aliens....

Wed, 07/25/2012 - 10:22 | 2649104 J 457
J 457's picture

Surprisingly the home builders sold off BEFORE the data was released.  Leaky leaky....??

Wed, 07/25/2012 - 10:29 | 2649154 catacl1sm
catacl1sm's picture

Nooooooo. Simply 'coincidence'.

Wed, 07/25/2012 - 12:59 | 2649855 Kayman
Kayman's picture

Bankers and Bloomberg are telling you to buy when they are selling. What else is new ?

When you "outsource" all your manufacturing jobs, the baseline of an  economy, where is the demand going to come from ?

Manufacturing credit and bullshit does not an economy make.

Wed, 07/25/2012 - 10:23 | 2649108 firstdivision
firstdivision's picture

Can I get a mortgage rate at LIBOR now?

Wed, 07/25/2012 - 10:25 | 2649122 blueridgeviews
blueridgeviews's picture

The Federal Gov't wants sooooo bad for the housing market to recover.  All recoveries were led by housing. 

What does THAT tell you about our situation?

Wed, 07/25/2012 - 10:25 | 2649126 alien-IQ
alien-IQ's picture

they must have had the "housing recovery" while I was at the beach because I TOTALLY missed it.

Wed, 07/25/2012 - 10:26 | 2649127 TideFighter
TideFighter's picture

Permits do not equal starts, actual starts are much worse. I saw a ZH Member post a great idea a few months ago-no time to search his name right now. But, we could suck up the shadow inventory very quickly by "granting" free home ownership to individuals that would waive their right to Social Security. These "grants" would come with government sponsored and approved quiet titles.  

Wed, 07/25/2012 - 10:30 | 2649153 surf0766
surf0766's picture

That is a socialist approach. Put the houses on the market. Sell them for what they are worth and take the loss. Stop "fixing" everything and anything. Fixing hasn't worked.

Wed, 07/25/2012 - 10:55 | 2649314 TideFighter
TideFighter's picture

A socialist approach? To begin to develope a plan to end social security and the trillions of unpaid liabilities that go with it? Your legion of "Deep Thinkers' have no other plan but to let things go? 

Wed, 07/25/2012 - 11:26 | 2649462 blunderdog
blunderdog's picture

     Put the houses on the market. Sell them for what they are worth...

Sounds good for about half a second, but then you have to deal with restructuring all the major banks (bankruptcy/liquidation/etc) and would probably spike the number of underwater and upside-down mortgage holders walking away from their mortgages.

The politicians don't have the balls to do anything about the real problem, and this is sufficient scale that your suggestion would probably crash civil society.

Wed, 07/25/2012 - 10:30 | 2649157 azzhatter
azzhatter's picture

and the piggies who don't need SS would snap them up as rental properties

Wed, 07/25/2012 - 10:27 | 2649135 Village Smithy
Village Smithy's picture

Someday there will be a book written, an expose, penned by the guy who for the past 4 years has been responsible for keeping the XHB levitating beyond all reality.

Wed, 07/25/2012 - 21:32 | 2651662 jerry_theking_lawler
jerry_theking_lawler's picture

wrong. that guy will be pushing up daisies as soon as his 'mission' is complete.

Wed, 07/25/2012 - 10:29 | 2649150 azzhatter
azzhatter's picture

We would be in a recovery mode already if the gov would have let the market collapse 4 years ago. Maybe a lower baseline but a lot of debt would've liquidated and we could be rising from the ashes. This is just death by a thousand cuts

Wed, 07/25/2012 - 10:31 | 2649160 catacl1sm
catacl1sm's picture

Well, that is the Al Qaeda method.

Wed, 07/25/2012 - 10:52 | 2649301 CH1
CH1's picture

We would be in a recovery mode already if the gov would have let the market collapse

Yeah, but then they might have lost their seats at the big power-monger's table.

These guys KNOW they are getting way more than they could even get on their merits, so they'll keep the evil game going at all costs.

Wed, 07/25/2012 - 10:32 | 2649169 azzhatter
azzhatter's picture

The fucking economy has cancer. The tumor(debt) needs to be removed. All the morphine(Zirp,stimulus,EBT,etc) in the world ain't gonna save the patient. The fucking tumor has to go and all the pain that goes with the surgery

Wed, 07/25/2012 - 10:33 | 2649176 Robot Traders Mom
Robot Traders Mom's picture

In the spirit of selfless promotion, I linked this to my website (as I will many ZH articles)


again, rough draft but comments and emails with color are appreciated to improve it!

Wed, 07/25/2012 - 10:37 | 2649206 Snakeeyes
Snakeeyes's picture

Housing purgatory. MBA purchase applications also falls. What happened to Goldman's rocket-like housing recovery????

Wed, 07/25/2012 - 10:38 | 2649221 virgilcaine
virgilcaine's picture

Lets build some more ugly , energy inefficient Mcmansions!  that willl get this Economy going. 

Wed, 07/25/2012 - 15:48 | 2650516 Things that go bump
Things that go bump's picture

My daughter wants to go look at a house with an assumable mortgage in the location she wants to buy.  Assuming a mortgage would greatly reduce her closing costs, but the mortage taken in 2010 is $34,800 more than the value of the house on Zillow and the comps I am finding on are 100,000 less than the assumable mortgage.  I'm afraid this greatly outweighs the advantages of a quick close and no closing costs.  I am going to advise her not to even consider it unless the sellers are willing to come to the table with a substantial amount of cash (unlikely).  They are just looking for a sucker to unload their mistake on and I think they are going to sit there.

Wed, 07/25/2012 - 10:42 | 2649248 GlomarHabu
GlomarHabu's picture

Why doesn't a miss of this size surprise me ..... every estimate , every stat, everything coming out of Wall Street, The Fed, and the Federal Government is bull shit.

...and now they are ratcheting up talk about our guns .... ..brings to mind the famous  Martin Niemoller poem .... (place updated bogies in proper places)

First they came for the Socialists, and I did not speak out--
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out--
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out--
Because I was not a Jew.

Then they came for me--and there was no one left to speak for me.

I say let 'em bring it .... if they dare.

Wed, 07/25/2012 - 10:51 | 2649293 tecno242
tecno242's picture

There will be a rebound for July based on what i'm seeing.  However, I think the Winter is going to see more price declines again. 

If rates even tick up to 4.5% .. they will be big price declines.

Wed, 07/25/2012 - 11:04 | 2649364 insanelysane
insanelysane's picture

Rebound?  And what praytell is your definition of rebound?

Wed, 07/25/2012 - 10:59 | 2649342 insanelysane
insanelysane's picture

These numbers are BS.  I live in the northeast.  Houses are selling like hot cakes and sellers are getting 25% over asking price.  I was almost trampled by all of the people trying to buy my neighbor's house.  It is crazy here.  I tell you it is absolutely crazy.

Wed, 07/25/2012 - 11:02 | 2649354 insanelysane
insanelysane's picture

June never was a good selling month for housing.  I mean the kids are out of school so why would you move.  Christmas is always the best time so I am sure the numbers will improve in December.

Wed, 07/25/2012 - 11:15 | 2649417 roadhazard
roadhazard's picture

If I was a news broadcaster I would laff when having to read that, "Housing is getting better". I hear it once a week from my local news to MSNBS. Extraordinary bull shit with a straight face over and over. It's amazing they think they have Any credibility.

Wed, 07/25/2012 - 11:39 | 2649518 ATG
ATG's picture

Options Overnight bought more GM and SPY calls on the selloff.

A Nonny Moose Red Clickers take note ~ "Trading well the best revenge."

OO Account up 4.6 times since we began posting on ZH and here 2 July 2012.

No guarantees for future results, although weekly subscrioptions are guaranteed: 

ZH designated subscribers generate ZH donations.

So far all our subscribers are repeats...

Wed, 07/25/2012 - 11:44 | 2649529 Dr. Kananga
Dr. Kananga's picture

The clearest evidence we'll have that housing has recovered is when folks stop seeing default as a valid economic strategy. You don't walk away from things that have actual value. (yes, I'm over generalizing here--but also looking for a benchmark that can't be finessed.)

Wed, 07/25/2012 - 11:51 | 2649562 Arnold Ziffel
Arnold Ziffel's picture

Only folks on LSD are buying in this market. My buddy jumped on a "deal of a lifetime" house that he said dropped from a 2008 high of $1.8 to $960,000 where he "grabbed it" taking out a 30-year lead weight around his (and his family's) ankles.

It's now $765,000. What a deal!

Wed, 07/25/2012 - 13:40 | 2649998 JohnKozac
JohnKozac's picture

I'll buy that $1.8 million house when it sells for less then $42 per sq foot, which is what is costs now to build in most locations. Labor is the major expense and labor costs are plunging due to the high jobless rate. When interest rates start to rise (regressing to the median of over 7%), these houses will drop even more in price. That's one reason the China Sovereign Fund is not buying RE yet. They publicly announced that RE is "still too high."



Wed, 07/25/2012 - 12:40 | 2649788 ejmoosa
ejmoosa's picture

Aren't these overly optimistic builders the same ones that overbuilt the last time around?

Wed, 07/25/2012 - 12:47 | 2649812 Village Smithy
Village Smithy's picture

Don't be fooled, they know better than anyone how bad it is. They aren't manufacturing houses so much anymore they're manufacturing "statistics".

Wed, 07/25/2012 - 12:54 | 2649826 LarryDavis
LarryDavis's picture

I have a place in the hamptons (I'm not rich nor do I work on Wall St.). You should see the propagandaesque real estate publications trying to sell outrageously overpriced mansions with glossy design savvy font riddled pages. There are a ton of these freebies and to me they spell desperation in the market. It's almost as if they are seeking th few remaining suckers with money to buy these fucking things. I could care less what my place is worth (not much) because I would never sell it and so I hope the market disintegrates like those fake towns used for nuclear weapon detonations in New Mexico.

Wed, 07/25/2012 - 13:33 | 2649969 RichardP
RichardP's picture

The future is to now as now is to the feudal system in England (or some other time in years past).

The history of the world is change.  Things have never been like they used to be.  The way of the world has always been morph, not start over.  We are not now like our ancestors used to be.  Yet we like our lives and the ancients liked theirs.  Future folks won't be like us, but they will like their lives too.  Morphing is the way of civilizations.

The financial system came into existance and grew to its present state as a response to this morphing (study the history of money for details).  While the financial system used to exist to serve the economy, it is now trying to mold the economy to serve the financial system.  Won't happen.  Civilizations will continue to morph.  Other, more local, financial systems will emerge to support local economies (many are already here in the form of the underground economy / black markets; Los Angeles has many of them, split along ethnic lines).  I don't see any large-scale recovery of anything so long as the financial system (those guys who need to buy large houses in the Hamptons) keeps trying to be the master of the economy rather than its servant.

Wed, 07/25/2012 - 13:51 | 2650021 JayKitsap
JayKitsap's picture

I was paid off on my mortgage, but decided to refi at 3% for 15Y to half its value, just to be more liquid.  What a royal pain the approval process was, although I am self employed I have a very good credit rating.  I feel that to qualify right now is a huge hurdle, so no buyers makes the prices drop, makes more sellers desparate.

We need some stability and confidence in the economy right now, but we are just getting is more paltitudes, more regulations, and more gov't borrowing.

Unexpectantly, we saw the word unexpected again as the paid analyists unexpectantly had unexpectedly bad predictions.



Wed, 07/25/2012 - 15:04 | 2650315 blunderdog
blunderdog's picture

Income stability is bad for the employers, and lack of income stability pretty much eliminates any broad-based interest in loans.

No winners here.

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