Against expectations of a 4.4% drop, New home sales collapsed by 9.2% in January. This is the biggest January drop since 2009 dragging the SAAR to 494k (back at December 2014 levels).
Here is the absolute value of new home sales:
And the more disturbing annual change, showing we have now peaked:
Worse still, home prices tumbled - from $295,800 to $278,000 (lowest since April 2014), and down 4.5% year-over-year as it appears the inventory fears have disappeared with months-supply surging from 5.1 to 5.8.
If this converges, we have a major problem.
Yet another leg of the "recovery" collapses.