Despite surges in mortgage applications juxtaposed with notably downbeat commentary from KB Home and Lennar, existing home sales rose modestly in December (+2.4%) but missed expectations for the 2nd month in a row (+3.0%) for a SAAR of 5.04mm sales. Only the Southern region saw sales improve. However, for all of 2014, there were 4.93 million sales, a 3.1% decline from 2013 (5.09 million) - the first drop since 2010. This should be no surprise as NAR finally admits the problem (instead of blaming weather) - “Housing costs – both rents and home prices – continue to outpace wages and are burdensome for potential buyers trying to save for a downpayment while looking for available homes in their price range.” It's the price, stupid!
[6]
For the first YoY drop since 2010... as the "echo bubble" bursts...
[7]
The trend of weak housing data continues...
Housing Surprise Model Hits New Low pic.twitter.com/hL0THIZUx7 [8]
— Not Jim Cramer (@Not_Jim_Cramer) January 23, 2015 [9]
