The Phaserl


New Home Sales Point To Renewed Collapse In The Housing Market

by Dave Kranzler, Investment Research Dynamics:

I am not even sure what to think about this horrific number, sales down 13% y/y; mo’s supply up 41% y/y. At least now we know that the demand destruction — most evident in the resale segment for several quarters — is not due to “lack of supply” or “the weather.” When a housing demand metric is 15% worse than my worse-case estimate, things are really bad out there. In fact, this is just more evidence that for the past two years housing data was buoyed by new-era, Fed-driven investor activity and the underlying, fundamental, end-user housing market is still in a serious depression…Mark Hanson, real estate and mortgage finance consultant.

It’s no secret that I’ve been bearish on the housing market for over a year. The performance of the homebuilder stocks in that time frame vindicates my view: the DJUSHB homebuilder index is down over 10%, with the S&P 500 index up nearly 25% in the same time period. That fact alone should be scaring flippers away from the housing market.

Read More @

Help us spread the ANTIDOTE to corporate propaganda.

Please follow SGT Report on Twitter & help share the message.

1 comment to New Home Sales Point To Renewed Collapse In The Housing Market

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>