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Financialization Of Housing And The Disturbing Gap In New Home Sales

The financialization of the U.S. housing market has led to a rather disturbing gap in new home sales relative to existing home sales. This is a subject I was referencing this week when I mentioned the problem builders are facing with the lack of affordable land to build new homes on. Today the Census Bureau reported new home sales for …

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New Home Sales Crash Back To Reality Of Higher Rates

The Census Bureau reported December new home sales of 536,000 (seasonally adjusted annual rate). This was a 10 percent drop from the revised November numbers and well shy of expectations. Unadjusted new home sales (38,000) were flat year-over year. The average price of a new home contracted in December 2016 was $384,000 while the median price posted at $322,000, near …

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New Home Sales Rise In November To 592,000 (SAAR)

New home sales rose to a seasonally adjusted annual rate of 592,000 in November. Census Bureau numbers showed the average price of a new home contracted in November was $359,900, down from the average price of $376,800 seen last year. The median price of $305,400 was also lower than last year’s median of $317,000. New home sales have been surprisingly …

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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 …

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New Home Sales Softening, Higher Rates Won’t Help

New home sales have rebounded nicely in 2016, but recent developments suggest the new home market could be looking at more softness ahead. In recent posts I detailed how the Census numbers for new home sales were likely overstated, and I was proven correct when the most recent report noted a dramatic downward revision of new home sales during the …

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September New Home Sales: Let The Revisions Begin!

A few months back I wrote that the new new home sales numbers from the Census Bureau were a work of fiction, and it turns out I was correct. The original summer numbers from the Census now look even more like election year theater. Census posted new home sales for September, and the downward revisions to the previous three months …

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New Home Sales Decline From Summer Peak, Median Price Lowest Of 2016

The Census Bureau reported a 7.6 percent decline for new home sales compared the election-year surprise we saw for July. Compared to August of last year, new home sales were still 20.6 percent higher than last year. It appears super low mortgage rates continued to provide some lift to the new home market. What did not rise in the latest …

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Lennar Homes – Sales Of New Homes In Houston Drop 10% With Higher Prices

Lennar Homes reported fiscal third quarter earnings, and the national home builder saw decent growth across U.S. markets with the exception of Houston. Sales of new homes were up 7 percent for Lennar compared to Q3 of last year, but deliveries in Houston dropped 10 percent. Lennar reported new orders rose 8 percent in the 3rd quarter, but orders of …

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Election Year Surprise New Home Sales In July Rise To 654,000 (SAAR)

New home sales for July rose to a seasonally adjusted annual rate of 654,000. According to the latest Census numbers for new residential sales, the median price of a new home in July was $294,600, up from $296,000 last year. The average price of a new home contracted in July was $355,800, up from $341,900. If the latest new home …

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Census: New Home Sales In June Rise To Highest Level Since 2008

The Census Bureau reported new residential sales for June that came in at a rate of 592,000 (SAAR). This was above expectations, and a continued indicator that the Fed’s juicing of the market continues to provide a boost to new residential construction. The latest report shows that new home sales in June were 25.4 percent higher than last year. New …