Sales of new homes plunged to a record low in January, government figures showed Wednesday, as the weak economy and a glut of foreclosed homes continue to weigh on the market.
The seasonally adjusted annual rate of new home sales plummeted 11.2% to 309,000 last month, compared with a revised rate of 348,000 in December, the Census Bureau said. That's a decline 6.1% from January 2009.
It was the lowest rate since the government began keeping records in 1963 and comes after declines in November and December.
The drop surprised many industry analysts. A consensus of economists surveyed by Briefing.com had expected January sales to rise to an annual rate of 354,000.
"Some people were expecting a surge in demand because of the tax credit," said Patrick Newport, an economist at IHS Global Insight. "But that surge isn't materializing."
Wednesday, February 24, 2010
New home sales plunge anew
New home sales plunged to a record low in January—And yes, these are seasonally adjusted numbers:
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No surprise. What goes around come around. What goes up must come down. Bell curves will be completed.
ReplyDelete"The drop surprised many industry analysts."
ReplyDeleteAnd there you have the nub of the problem in one easy payment.
It would be utterly hilarious if it wasn't so damn sad.
Like Steve Keen and Co did recently with the Dynamite Prize for the clown who contributed more to this mess than any other we need a high profile equivalent of the stocks where we can throw, figuratively speaking, rotten veg at them.
"nonpartisan said...
ReplyDeleteNo surprise. What goes around come around. What goes up must come down. Bell curves will be completed."
Hey Nonpartisan, I see you are back to comment on the national new home sales stats.
I just happened to look up the YOY new home sales stats for the local area. Care to know what they are?
(Hint, you wont like it...says its different here)
Hey Partisan, do you care to provide your address so I can look it up????
ReplyDeleteXOXO
Lemmy
Why - so Noz and NonPartisan can come and kill me in my sleep :)
ReplyDeleteThat's funny. Too bad you are not a member of our club.
ReplyDelete"But that surge isn't materializing."
ReplyDeleteNo shit.
"Some people were expecting a surge in demand because of the tax credit..."
ReplyDeleteAfter seeing so much retirement money handed over to private bankers, people are **finally** getting smart. They know a large wave of foreclosures is coming and they are no longer pulling the trigger.
Good for them. They are questioning the intentional disinformation on their TV and radio. But their mistrust only goes so far, because you know how much we love to believe the soothing womb of our TV world.
"Sales of previously owned homes in the United States unexpectedly plunged in January, an industry survey showed Friday, fresh evidence the housing market has yet to find stable ground."
ReplyDelete"The National Association of Realtors said sales fell 7.2 percent from December's level to an annual rate of 5.05 million units, sharply below market expectations for a 5.50 million unit pace."
"Today's figure is certainly not good news in terms of sales," said Lawrence Yun, chief economist for the NAR.
As an economist with the World Housing Authority, the numbers are in line with a strong recovery in a few months - interest rates should fall to 3.5% by June.
ReplyDeleteI just happened to look up the YOY new home sales stats for the local area. Care to know what they are?
ReplyDeleteBut..but...but...the *bell* curve!
What I don't get about this whole bubble thing: how did anyone ever think that a shitty house built in a cul-de-sac in the exurbs of Los Vegas would *ever* be worth anything. Thanks, Doomers, for pointing out the obvious.
Meanwhile, the value of a townhouse in the immunozones remain rock solid. It's like complaining that beans are overpriced because you sold your cow for three beans that refused to sprout. Yeah, no shit that house is worthless.
Partisan...
ReplyDeleteBelieve me you're not worth it.