Homebuilders were exuberant, The Fed was confident, and stock markets have recovered... so why did New Home Sales collapse 11.5% in September (missing a 0.6% drop expectation by a proverbial mile)? This is the largest MoM drop since July 2013. Worst still, the excitement of July and August data has been notably revised lower to press the current New Home Sales SAAR to 468k - its lowest since November 2014. At the same time, median home prices surged to $296,900 - the highest in 2015. Time to hike rates?
Biggest MoM drop since July 2013... (and weakest YoY growth +2.0% since Nov 2014)
It seems Homebuilders really don't know anything after all...
One possible culprit: the raging housing bubble, as the median new home sales price rises to the highest in 2015 and just why of its all time high at $296,900.
Dragging the SAAR to its lowest since Nov 2014...
Who could have seen that coming? Home Sales collapse as the ongoing bubble push to drive asset prices higher crushes affordability.