New Home Sales Tumbled In April, Unchanged Year-Over-Year

So much for the Trump bump euphoria. New home sales tumbled in April, posting at a seasonally adjusted annual rate of 569,000. This was 73,000 below the revised March figure and far below analysts expectations. Then again analysts haven't been paying attention to the real economy, so this latest data is not a surprise to anyone who doesn't have their head in the sand. Year-over-year, new home sales for April are back to unchanged according to the latest Census figures. And just like that, the "pent up demand" that pundits have been talking about has [...]

Why Home Builders Can’t Meet Housing Demand

America's home builders are having a difficult time meeting housing demand, or so they say. While access to credit is cited as a factor that is holding back builders, that's only a partial cause of builders' reluctance to put their money where their optimism index mouth is. As NAHB chief economist, Robert Dietz, explains it builders are finding it more difficult and expensive to develop land. Home builders should be thanking the The Federal Reserve for this warped, manipulated landscape, but most builders will likely avoid the discussion. The first rule of fight club is [...]

By | 2017-01-12T21:38:57+00:00 January 11th, 2017|Development, New Home Sales, Real Estate, Spin Cycle|1 Comment

New Home Sales Soften In October

New home sales for October came in at a seasonally adjusted annual rate of 563,000. This was below forecasts, and the previous three months of new home sales were revised downward by 34,000 units. Even with the decline, new home sales were still 17.8 percent higher than October of last year. The Census report for new residential sales in October showed a median new home price of $304,500 with the average price at $354,900. Median prices were higher than a year ago, but the average price was $12,000 less than last year. It appears the [...]

Mortgage Rates Rip To Highest Level Since July 2015

Katy Texas mortgage rates rose to their highest levels since July 2015 as we ended the week. That new home you may have been looking to purchase just became more expensive. Unless you already had a mortgage rate locked in, higher rates likely means higher home payments or diminished expectations. As Friday came to a close, mortgage brokers were discussing the wreckage of higher yields and looking at a new interest rate landscape, at least in the short term. Mortgage News Daily explained the closing of the week in the mortgage market... "The most prevalent [...]

By | 2016-11-22T16:01:26+00:00 November 19th, 2016|Housing Policy, In the Press, Markets, Mortgage Rates, Real Estate|0 Comments

Peak Auto? October Motor Vehicle Sales Decline

Preliminary October home sales numbers for Houston indicate volume is still holding steady even if prices are taking it on the chin. U.S. motor vehicle sales appear to have already topped out with October sales declines for all of the major U.S. automakers. Car sales in the Houston area are now down 22.6 percent year-over-year. Looking at a chart of motor vehicle loans and the miraculous "recovery" in the automobile industry during the last 8 years, one might get the impression that U.S. automobile sales look a lot like U.S. home sales in the sense [...]

By | 2016-11-03T16:53:47+00:00 November 3rd, 2016|Economy, Energy & Utilities, Real Estate, Transportation|1 Comment

Debt, Deficits & Housing – The Smoke & Mirrors “Recovery”

Many among the status quo have defended the last 8 years as a productive "recovery" from the abyss of financial armageddon unleashed by our criminal banking sector. The efficacy of the recovery depends on the person responding to the question. For the vast majority of the U.S. population, there has been no recovery, but instead a steady decline. If you have been paying attention to the early release of season 5 of 'House of Cards', speaking of the email data dump exposing our corrupt political machine for all to see, the reasons behind the phony [...]

Census: New Home Sales Decline 6.1% YoY In February

The Census Bureau reported that New Residential Sales In February 2016 declined by 6.1 percent compared to the same month last year. Unlike some cheerleader economists, the weakness in new home sales does not surprise me in the slightest. I would also point out that contrary to the opinion some pompous housing "experts" this was not a "decent" report. It was actually a wake-up call for the housing pundits who continue provide cover for failed monetary policy and the government's refusal to reform the financial system. The sad truth is that the U.S. real estate [...]

By | 2016-09-29T13:57:08+00:00 March 23rd, 2016|Economy, Housing Policy, In the Press, Real Estate, Video|0 Comments

Census: Housing Starts, Permits Stall In January As Economic Backdrop Weakens

The Census Bureau reported that January housing starts and permits fell from downward-revised December numbers. Housing starts posted at a 1,099,000 annual rate in January, down from December's rate of 1,143,000. Housing permits also fell in January, posting at a rate of 1,202,00. Single-family housing completions in January came in at a rate of 693,000, down from December's rate of 703,000. Despite higher year-over-year mortgage purchase applications, new home construction is still struggling in the Fed's echo-bubble of inflated asset prices. This is why you see more advertisements of low-down-payment purchase options and even zero-down [...]

By | 2016-02-17T15:38:29+00:00 February 17th, 2016|Development, Economy, Real Estate|0 Comments

Texas Layoffs Surge In January, More Job Cut Announcements To Come

The latest job cut numbers from Challenger Gray should give pause to those who have been calling a bottom to the recent downturn for the energy sector. Not only did Texas blow all other states out of the water in terms of job cut announcements in January, the YTD layoffs in 2016 point to an accelerating downturn. Challenger noted that the 75,114 job cut announcements for January 2016 was 42 percent higher than a year ago, and the largest January total since 2009. The "lower for longer" theme for energy prices is finally beginning to [...]

Peak Insanity: San Francisco Poppy Loan Offers 100% LTV Up To $2 Million

Just when you thought the echo-bubble in housing couldn't get any more obvious, it does. The San Francisco Federal Credit Union apparently wants you to have your cake and eat it too with their new POPPYLOAN. The POPPYLOAN is a 100% LTV mortgage for your favorite California crap shack on a postage stamp lot. If you work in San Francisco or San Mateo County you can now get a loan for up to $2 million to buy a primary residence in one of the 9 Bay Area counties. Just don't ask the loan officers for [...]