NEW HOME SALES SURGE IN OCTOBER

AP

[SoFloFreeper]

WASHINGTON (AP) -- The Commerce Department reports that sales of new homes surged to a record annual rate of 1.42 million units in October.

[SoFloFreeper]

just off the wire. Just yesterday the MSM were screaming about proof of a housing bubble. They just keep HOPING for bad economic news. This must not be good news for the 'rats or the MSM.

[theDentist]

Doncha hate it when a housing bubble just refuses to burst time after time, month after month, year after year?

[SoFloFreeper]

MORE: WASHINGTON (AP) -- Sales of new homes soared at a record pace in October in what could be a last hurrah for the booming housing market. The Commerce Department said that sales of new single-family homes shot up by 13 percent last month, the biggest one-month gain in more than 12 years. The increase pushed sales to an all-time high seasonally adjusted annual rate of 1.42 million units. The increase confounded analysts who had been predicting that new home sales would decline by 1.8 percent, reflecting continued increases in mortgage rates. It was possible that the unexpected surge reflected a final rush by buyers to get into the market before mortgage rates climb higher.

...in what could be a last hurrah for the booming housing market.

Aww...I see, they have to add that in the lead to TEMPER the good news. LOL.

[SoFloFreeper]

see post three. they found a way to put some bad news in the story. :) They are so predictable.

[bigsigh]

let me know when the popluation goes down and I'll be worried.

[apackof2]

PLease ping all the sky is falling posters who "prophesied" a major housing bubble

[pissant]

But how can people be buying homes? They all work at Walmart for $7 hour?

[Fierce Allegiance]

But, but, but, what about the bubble?

[adam_az]

Expect a certain doom n gloom texan freeper to avoid this thread like the plague.

[adam_az]

ping, sourpuss. :)

[austinite]

Remember, it's different this time.

[silverleaf]

Ruh Roh... those who prophesy, and await the coming of the bursting bubble .... may just get a fat wet raspberry instead.

[Thane_Banquo]

Inventories of unsold homes are also at their highest in 18 years, which is bearish for the housing market.

[Mo1]

Well there goes another DNC talking point

[elfman2]

The "housing bubble" won't do anything more than wobble a little until the stock market explodes and gives people an alternative place to put their money. (And no, gold doesn't count.)

[Havok]

"Doncha hate it when a housing bubble just refuses to burst time after time, month after month, year after year?"


Yes because I cant afford to buy one up here in Taxachusetts.
I'm moving to New Hampshire. (thats not any better as of late)

[elfman2]

"Inventories of unsold homes are also at their highest in 18 years, which is bearish for the housing market."

I think that’s half the story. Sales are still high, and that has pulled more homes on the market from people cashing out, figuring that prices or at their peek.

[theDentist]

Nashua's nice, but I'd head a bit further North, and I'd do all I could to avoid Rt 3 and that southern trek each morning.

[dawn53]

Just read this in our local paper this AM. Our area's prices are still rising.

http://www.sptimes.com/2005/11/29/Business/Bay_area_home_prices_.shtml

[Thane_Banquo]

One could also argue that the increase in new home sales is the result of the big building companies dumping in anticipation of price decreases. I am not sure that volume numbers can be interpreted as positive or negative for the market without other evidence.

In the long term, if housing prices continue to rise at a much higher pace than after-tax incomes, then it seems that the marginal buyer will be priced out of the market, which doesn't bode well for further housing price increases.