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. Hope.is.fading 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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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.

camaro68ss's picture

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

Temporalist's picture

Demand pull?

Ben B: I demand you pull my finger.

TrainWreck1's picture

I am unexpectedly surprised!

Alpacanio's picture

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

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.

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.

Old Poor Richard's picture

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

 

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!

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.

 

Village Smithy's picture

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

LULZBank's picture

Still as good as September 2010 Bitchezz!!!

SilverTree's picture

~Home is where you hide your PMs.~

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.

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.

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.

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.

txsilverbug's picture

Housing market?  What market?

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?

DosZap's picture

DFW new home sales up 15% ytd.

surf0766's picture

One step closer to the big print.

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!

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!

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

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.

RichardP's picture

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

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.

Jason T's picture

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

Jlmadyson's picture

Goldilocks is back!

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.

Cast Iron Skillet's picture

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

quantum market theory?

CH1's picture

quantum market theory?

Sarcasm.

surf0766's picture

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

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.

Son of Loki's picture

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

J 457's picture

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

catacl1sm's picture

Nooooooo. Simply 'coincidence'.

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.

firstdivision's picture

Can I get a mortgage rate at LIBOR now?

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?

alien-IQ's picture

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

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.  

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.

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? 

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.

azzhatter's picture

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