Skip to comments."Actual" New Home Sales First 6 Months of 2012 vs. Prior Years; Reflections on the Housing Recovery
Posted on 07/26/2012 12:09:52 PM PDT by Kaslin
New home sales unexpectedly plunged today, with the biggest drop in over a year.
New U.S. single-family home sales in June fell by the most in more than a year and prices resumed their downward trend, suggesting a set back for the budding housing market recovery.Actual New Home Sales
The Commerce Department said on Wednesday sales tumbled 8.4 percent to a seasonally adjusted 350,000-unit annual rate, the lowest rate in five months. The percent decline was the largest since February 2011.
May's sales pace was revised up to 382,000 units from the previously reported 369,000 units, taking some of the sting from the report.
Economists polled by Reuters had forecast sales at a 370,000-unit rate last month. Compared to June last year, new home sales were up 15.1 percent.
Me first! Me first! UNEXPECTEDLY!
There IS no housing recovery.
Despite the negatives and relative low sales, homebuilders are recovering because they cut costs and bought cheap land during the recession.
Of course some jobs would do wonders for a real recovery.
Think of the money from hundreds of thousands of jobs just from the pipeline Obama killed. Or teh boost to gdp from more offshore oil drilling he prevented. Or the jobs lost to Obamacare and higher taxes, on and on.
A big part of this is the price of gas. Not only does declining gas prices allow people to consider moving, it also allows people to think it’s OK to live in the suburbs again.
Meanwhile, the price of food is going through the roof. Example: bananas were $0.49 a pound a year ago are now $0.59 a pound. A 20% increase, yet the official price of food barely goes up.
More wonderful news. My house has lost a third of its value and I am in better shape than most.
We just sold our house. It was on the market about 4 weeks and we got more than most of the comparable homes in the area were getting. Two reasons for this: we busted our butts to get the place move in ready, and clean and neat as a whistle and we were willing to settle in 4 weeks so the family could be in before school started.
Houses in our area are selling, but people are settling for less than they would have a year or two ago. They’ve had to face reality.
I fear that we are double dipping, so I’m so glad we sold before it starts to become more obvious.
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