The cracks are starting to show in the housing ‘recovery’. With Starts and Permits already rolling over, New Home Sales printed a disappointing 511k (vs 520k expectations), dropping 1.5% MoM. This is the 3rd monthly decline in a row – the longest such streak since July 2011. While positive for affordability, the decline MoM and YoY in median home prices (-$9,400 and -$5,400 respectively) will do nothing for The Fed’s wealth-creation mandate. The West saw New Home Sales plunge 23.6% MoM while The Midwest surged 18.5%.
Worst streak of MoM home sales weakness since July 2011…
As YoY remains flat…
Is price starting to catch down to sales?
“Housing is certainly not booming,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics Ltd. in Valhalla, New York, said before the report. “Some people may be shut out of the market because lending standards are still tight. There may still be some reluctance to buy versus rent.”
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