US Housing Market Slump Continues: New Home Sales Tumble In July

Following yesterday's hope-crushing drop in existing home sales (weakest since Feb 2016), new home sales were expected to rebound 2.2% MoM after crashing over 5% in June, but they didn't as new home sales tumbled 1.7% MoM (after upward revisions).

June's 5.3% drop was revised up to a 2.4% drop, which impacted the miss in July...

The first back-to-back decline since January was led by a 52.3 percent drop in the Northeast to 21,000 home sales, the fewest since 2015, as well as a 3.3 percent decline to 355,000 in the South, the biggest region. The West and Midwest recorded gains.

But New Home Sales bounced on a YoY basis...

 

New Home Sales SAAR is back at its lowest since Oct 2017...

 

The median new home price rebounded from 310K to 328.7K...

 

Again as we noted previously, none of this should come as a huge surprise since

Sentiment for Home-Buying Conditions are the worst since Lehman...

With The Fed set on its automaton hiking trajectory, we suspect home sales will continue to lag.