We have another housing bubble.
July new home sales crashed 12.6%, a much bigger fall than was expected. Year over Year sales have collapsed 29.6%. New home sales have now dropped during six of the last seven months, and are at the lowest level since January of 2016. The supply of unsold new homes is its highest since March 2009, Peter Schiff reports.
Sales of new U.S. homes plunged more than expected in July to the lowest level in six years as rising mortgage rates and the relentless increase in home values slowed activity by edging prospective homebuyers out of the market.
New single-family home purchases tumbled 12.6% to a seasonally adjusted annual rate of 511,000 units, the Commerce Department reported on Tuesday.
It marked the sixth consecutive month of declines. Economists surveyed by Refinitiv expected new home sales – which account for a small percentage of total sales – to fall 2.5% last month, Fox News reports.
This is the recession that Democrats claim isn’t a recession.
US New Home Sales hit a 6-year low in July, down over 50% from their 2020 high. Tends to be a leading indicator for the economy, recessionary signals continue to build.
Charting via @ycharts pic.twitter.com/BFwG8LuTSM
— Charlie Bilello (@charliebilello) August 23, 2022
White House Press Secretary Karine Jean-Pierre has not held an on-the-record press briefing since August 9 . She contends the U.S. economy is stronger than ever and we’d like to know what she thinks about the new housing slump.
She’s MIA and no one seemed to notice. Can’t imagine why.
Mortgage rates, which move in tandem with US Treasury yields, have soared even higher than the Fed’s benchmark overnight interest rate. The 30-year fixed-rate mortgage is averaging 5.13%, up from 3.22% at the start of the year.
According to the NY Post, despite slowing demand, house price growth remains strong. The median new house price in July was $439,400, an 8.2% jump from a year ago. There were 464,000 new homes on the market at the end of last month, up from 450,000 units in June.
Keynesians have one solution – raise rates and sacrifice the housing market and businesses for that matter.
Persistently high mortgage rates and house prices further eroded affordability of new U.S. single-family homes, with sales plunging to a 6-1/2-year low in July https://t.co/8HFfA3ROXs pic.twitter.com/3lIPxCZlHT
— Reuters (@Reuters) August 24, 2022
The recession is just getting started.
New Home Sales plunge 30% Y/Y pic.twitter.com/8XSRAWyojV
— zerohedge (@zerohedge) August 23, 2022
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Stop listening to a Lying Government; we are in a Depression! When you have a a 25% Plus increase in Cost and a 25% Plus decrease in investments like a home, you are living in a Depression! This what happens when Governments interfere with the Free Market and Print Worthless Money.
This is how we handle the economy: First we scream that home prices are too high, the FED is too easy and should have raised rates a long time ago, too much stimulus, now everything is going to blow up and collapse, buy spam, gold and silver and rule the world. Then, when the FED raises the overnight rate we… Read more »