New Home Sales Collapse - May to June 2014

[JohnyMac]

Zero Hedge Reports that new home sales suck (Used as a intransitive verb).

New Home Sales in June plunged to 406k vs 504k in May  (remember that 504k print was the catalyst for 'weather' is over and the market to surge: it somehow was magically revised lower by more than 10% to only 442K) Now that has soaked in, consider this is equal lowest sales print since September 2013 (and Dec 2012) and the biggest miss since July 2013.

The last 3 months of exuberance have all been revised significantly lower as follows:

    March: 410K to 408K
    April: 425K to 408K
    May: 504K to 442K...

I would love to read what Wellie has to say but alas you boobs have been insensitive and she doesn't come to Unchainedpreppers anymore. 

August 8th, we should see the first reporting of Q2, GDP numbers. Trust me they will be re-figured downward later but it will be interesting to see what comes out. 

I still predict when all of the dust settles and the final number comes out in October it will be flat (Zero %) to negative .5%.

Stay tuned my friends...Stay tuned.

[Well-Prepared Witch]

I would love to read what Wellie has to say but alas you boobs have been insensitive and she doesn't come to Unchainedpreppers anymore.

lol! JM, I'm afraid it's a far less nefarious reason (though philosophical differences certainly are part of my stepping away from the Prepping community in general).  I've been SWAMPED at work.  So, yay for lots to do at work, not so yay for free time being eaten up. 

I'd like to point out a couple articles that may be of interest along with a few quotes.

http://www.forbes.com/sites/erincarlyle/2014/07/24/new-home-sales-slip-8-1-in-june/

“With interest rates generally improving this year, the volatility in recent sales may be driven more by availability of inventory and employment.”

Indeed, housing economists point out that underlying economic factors–below average growth in median household income, labor force participation, bank lending and household formation–may be stalling the housing recovery.

http://www.usatoday.com/story/money/2014/07/24/june-new-home-sales/13087091/

While monthly figures can be volatile, more reliable quarterly averages show the new-home market's weakness. Second-quarter sales were 6.4% below the pace in last year's second quarter, Karol points out.

Despite recent signs of a pickup in the housing market after a rough winter, the pace of its recovery this year has not quickened as economists expected despite an improving jobs market and mortgage rates that are still near historical lows.

and

Existing-home sales rose 2.6% in June, but are trailing last year's first half. With the revisions in Thursday's report, new-home sales are running about 5% behind a year ago.

There were some hopeful signs in the latest data, some economists say. For one, the supply of homes available for sale rose to 197,000, a three-year high.

[rah45]

Don't have much to say here, other than it's good to see you posting again, Wellie! Sincerely.

[Well-Prepared Witch]

Thanks. I allowed myself a lazy day today and decided to use part of it to pop in here. It's nice to see what's going on.

[JohnyMac]

Great articles Wellie!