New Home Sales Smash Expectations: Spike To 10 Year Highs As Average Price Tops $400k For First Time

Following the bounce in exisitng home sales (albeit lower YoY), new home sales ripped back higher in October (up 6.2% vs expectations of a 6.1% drop) following a big downward revision of last month's manic spike. This is the highest print for new home sales since Nov 2007.

The 6.2% surge is a six standard deviation beat of expectations...

September's 18.9% spike was revised notably lwoer to a 14.2% jump to 685k SAAR...

 

This is the highest new home sales SAAR print since Nov 2007... but still has a long way to go back to 'normal'...

And finally, we note that the average new home sales price hit a new record high, above $400K for the first time ever - $400,200.

Comments

Majestic12 Eyes Opened Mon, 11/27/2017 - 15:14 Permalink

"Everyone's a winner babe... thats the truth !!"

If you mean "Private Equity firms" by the term "Everyone", then yeah, all of those, bloated, blood-sucking, pedophile, tranny worms are "winners".

More rentier "success"!

It ain't millennials buying.

Can't squeeze blood out of a rock...where will they find renters with good credit and incomes high enough to cover the mortgage?

Simple math, folks.

In reply to by Eyes Opened

XBroker1 Five Star Mon, 11/27/2017 - 19:30 Permalink

In 'money', not gold or in my case I cashed out 2 paid off homes to merge into one. Home prices when pegged to gold are 'more' affordable. Not investing in 'something' is what turned out to be costly for a lot of ppl. I've met a lot of those people working in financial services. Those were the ones who often slammed the door in my face. Doesn't mean the ones who did failed to plan, but many of them did.

In reply to by Five Star

two hoots Mon, 11/27/2017 - 10:23 Permalink

All this expansion in consumer debt must be a boon to the financials....'til it ain't....then the usual rescue.  Debt is not the problem, It's the default.I'm all for expansion and people improving their lives but the levels of debt and leverage are concerning.  Other:What would be the impact on the fake markets if bitcoin collapsed?

csmith two hoots Mon, 11/27/2017 - 11:43 Permalink

"...but the levels of debt and leverage are concerning."Why? Bankers and government (the nexus of which is the Fed) will NEVER let deflation happen. It threatens their incomes and power too much. Bankers can't permit home values to fall EVER, as 2007-2009 demonstrated. Bureaucrats know that deflation is the ONLY force that can threaten tax revenues (income, property, sales - you name it). So, it simply will not happen. The 2% inflation "target" is inviolable.

In reply to by two hoots

ParanoidSquirrel Mon, 11/27/2017 - 10:21 Permalink

Could someone expain to me who can afford $400k homes? A quick google search says median household income is $60k. So people are paying 6.5x their income for homes? No thanks....

gatorengineer two hoots Mon, 11/27/2017 - 10:53 Permalink

Now tack on another grand (at least) for taxes and insurance, and figure in $500 for maintenance and upkeep....you are at $3300 a month.  In another article here this morning that top 7.5 percent were making $117k  You are not doing this house, having a car, savings health insurance, food, kids, etc, on $117k.  So who the fuck is buing this house.  the top 2.5% is around 220k, you could do it on that with limited everything else....

In reply to by two hoots

itstippy ParanoidSquirrel Mon, 11/27/2017 - 11:07 Permalink

Median income people aren't buying many new homes; there are very few new homes being built in median income peoples' price range.  It costs so much for the buildable land, permits, utility hookups, etc. that the builders only put up high-end 2,500-3,500 sq. ft. luxury homes and condos.There's enormous demand for new, more modest 1,200 sq, ft. homes and condos priced at $200K.  Modern building techniques could easily put these up and make good money.  But - they can't get permission to build.  Every attempt at affordable housing in areas where people actually want to live is stymied by zoning regulations and very loud NIMBY neighborhood groups.Texas is the exception.  They seem to have a more "Let 'em build" attitude for some reason.  

In reply to by ParanoidSquirrel

Garciathinksso Mon, 11/27/2017 - 10:23 Permalink

new home construction loans are the new subprime, builders make huge margins on sale of house, most builders have their own mortgage division, huge incentative to get them approved....

Eyes Opened aliens is here Mon, 11/27/2017 - 12:40 Permalink

Prices here in Ireland are goin tru the roof too... because of a very serious shortage people are desperate to "get on the ladder"... The capitol, Dublin , is seeing the fastest rise & highest prices... €400k barrier broken AVERAGE !! Wanna go uptown ??? Bring yer bitcoins & plenty of 'em.... https://www.joe.ie/news/average-price-house-ireland-582999 Personally , I live in Mayo & own my house outright 13 years (I'm 59)Fuck 'em I say, because we were here 10 years ago & peeps STILL haven't learned....

In reply to by aliens is here

Rubbish Mon, 11/27/2017 - 10:35 Permalink

I guess but not me. Should close this week on a $30k fixer mobile 950 sq ft plus 2 car. Love the whole retired trailer trash idea. I gets free stuff too right? Gold Bitchez......I pick up pennies

idontcare Mon, 11/27/2017 - 10:39 Permalink

.... AND the average sq ft you get for 400K is what?   ..... Soon 10x12 pre-fabbed sheds from HD will be 400k + $75 delivery from store w/o assembly, of course.