January New Home Sales Collapse Most Since 2009 As Prices Plunge To 2-Year Lows

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.