US New Home Sales Down -32% Under Biden While Mortgage Rates Are Up 89%, Framing Wood Up 21.4% (New Home Sales Down -16.6% For April)

Confounded Interest ^ | 05/24/2022 | Anthony B. Sanders

[Browns Ultra Fan]

I have never seen two Federal entities make such a mess in my life. The Federal Reserve and The Federal government.

The good news? The 10-year Treasury yield is down -12.9 BPS this morning generally resulting in lower 30-year mortgage rates. Of course, the reason why the 10-yield is falling is generally bad news.

The bad news? US New Home Sales fell -16.6% MoM in April as mortgage rates skyrocketed.

Since the installation of Joe Biden as President, new home sales have plunged -31.2%, mortgage rates are up 88.9%, and framing lumber prices are up 29.2%.

Biden is out there bragging about rising energy prices which he views as a necessity to force the conversion of America to electric cars and trucks. Biden is the first President in history to gloat over the suffering of American households.

Under Biden, regular gasoline prices are up 92%, diesel prices are up 111%, and CRB Foodstuffs are up 61%.

Say, framing lumber for housing is cheaper than food. Maybe Biden will suggest Americans transform to being beavers and gnaw on wood.

[Browns Ultra Fan]

Biden is intentionally driving up energy prices AND is turning over our national sovereignty to the UN and WHO (heavily controlled by Communist China). Biden and Obama are the WORST Presidents in history and belong in Venezuela with Maduro.

[bray]

The World Communist Party is taking over.

[AnotherUnixGeek]

US New Home Sales Down -32% Under Biden While Mortgage Rates Are Up 89%

Inventory can't possibly shrink enough to sustain current prices when there's this much downward pressure on demand - there will be a crash in property values this year. I sold my CA house in April, I'll be waiting to buy a new house out of state this year. It's going to be tough surviving the Biden economy, anticipating peak senility is going to be necessary.

[Dr. Sivana]

We were ate post-2008 record highs in new home sales. down 32% Month-over-Month is more like a correction.

In desirable areas, new homes will be built, and the prices will only fall so much because the cost of materials and building is way up. In less-desirable places, new homes will not be built. Used home prices will be held up by the cost of building new homes.

The real problem will be the effect of rising interest rates on the national debt.

[WASCWatch]

Framing lumber prices will drop significantly in the near future with the dramatic drop in new home construction. Labor costs will also go down significantly.

[Restless]

In February 2021, a contractor gave us a $6200 estimate to build a small spare bedroom in our basement. He couldn’t work us into his schedule last year, but he was able to get to us in April 2022. In 14 months, the price tag jumped to $7800, nearly a 25% increase.

[Presbyterian Reporter]

And after the new home is built with inflated material prices, then the new homeowner gets to insure and electrify it.

I just got my house insurance renewal notice and the price is 30.7% higher for the next 6 months.

I just got my April electrical bill and the April 2022 price per KWH was 21.3% higher than the April 2021 price per KWH.

Welcome to Biden’s World.

[Gnome1949]

The wild card in all of this is the massive onslaught of illegals flooding into the United States.

Where will all of these millions of desperately poor and illiterate people live in a country with a dire shortage of houses and apartments so horribly overpriced?

Who will pay their rent? THE TAXPAYER CITIZENS OF THE USA?

[Grampa Dave]

Biden is out there bragging about rising energy prices which he views as a necessity to force the conversion of America to electric cars and trucks. Biden is the first President in history to gloat over the suffering of American households.

Under Biden, regular gasoline prices are up 92%, diesel prices are up 111%, and CRB Foodstuffs are up 61%. ============================================================

“[When] it comes to the gas prices, we’re going through an incredible transition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on fossil fuels when this is over,” Biden said during a press conference in Japan following his meeting with Prime Minister Fumio Kishida.

Re­al­ism versus Liberal Biden Rhet­o­ric/B$, at filling stations’s/Gas Pumps!

No Biden bumper stickers being seen in filling stations!

Please read my tagline. It came about this past week after a 1 on 1 discussion with another senior citizen.

He had just filled his gas tank before grocery shopping, where I was shopping. It had just cost him just under $100 to fill up his vehicle.

I brought up how earlier that week, while I was getting gas, a customer at the gas station was losing control verbally.

Then, this gentleman brought up his observational question, and it is now my tagline:

Has anyone, recently, seen a Biden sticker on any vehicle and in particular at a gas station?

Biden says this is a good thing as it is transitioning us off of fossil fuels. So rejoice comrades as Dear Leader says it is a good thing!

President Biden seems to praise high gas prices as 'incredible transition' Americans must go through!

The record-high national average for a gallon of regular gas is $4.56, and is much higher in some states.

President Biden seems to praise high gas prices as 'incredible transition' Americans must go through!!!!!

Biden made this statement on gas prices during a joint press conference with Japan Prime Minister Fumio Kishida on Monday.

"Here’s the situation. And when it comes to the gas prices, we’re going through an incredible transition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on fossil fuels when this is over,"

Biden said, seeming to justify or praise those sky-high prices Americans face at the pump.

[Dr. Sivana]

The lumber prices went up well before the surge in home construction. They might go down, but not by much. High oil prices keep a high floor on the cost of heavy construction material transported over great distances. Ditto for concrete, rebar, drywall, etc.

This is a repeat of the 1970s, and the inflation is here to stay until there is a change in policy, which will bring short-term pain . . . at best.

[Gnome1949]

There has been a recent building boom in America of multi-family housing but these units are intended to be rented for more than $2,000 per month.

We are being flooded with POOR people who cannot afford what is available to rent.

[Roadrunner383]

“Since the installation of Joe Biden as President, new home sales have plunged -31.2%,...”

Well, must be due to supply because home sales have been red hot in N.Ga this year. Wife and I were told by two real estate agents on two different homes not to bother making offers unless we had all the cash in the bank and we needed to bring a bank statement to prove it. No contingencies allowed for sale of our home (which is paid off).

[Gnome1949]

Look for massive, homeless tent cities to expand everywhere in America.

The USA will quickly resemble places like Calcutta, India.

America is being destroyed rapidly, before our eyes.

[Presbyterian Reporter]

“””The wild card in all of this is the massive onslaught of illegals flooding into the United States.

Where will all of these millions of desperately poor and illiterate people live in a country with a dire shortage of houses and apartments so horribly overpriced?

Who will pay their rent? THE TAXPAYER CITIZENS OF THE USA?”””

---

So true. The Biden Crime Family has a way of making everything worse for the citizens of the USA.

Why are millions of people being illegally imported into the USA when there are millions of people already in the USA who are not working because Biden keeps handing out freebies.

[bk1000]

They are either incompetent or deliberate. I don’t think they are incompetent.

[Freedom_Is_Not_Free]

4 to a room, no problemo.

Illegals will rent a 4 bedroom home and house 16 people in it, all with jobs. They aren’t like you and me.

[Revel]

The lie in this article is right in the title. 2 by 4’s cost about 10 bucks a piece. That is more than a 100% increase from not to distant times.

[Grampa Dave]

“In February 2021, a contractor gave us a $6200 estimate to build a small spare bedroom in our basement. He couldn’t work us into his schedule last year, but he was able to get to us in April 2022. In 14 months, the price tag jumped to $7800, nearly a 25% increase.”

One of our BIls became a widower last year. His wife had converted their spare bedroom to an office, sewing room, exercise room and a hobby room mainly for her.

He wanted to convert that room into a combo spare bedroom and inside storage for his expensive outside gear. Then, have the master bath shower/tub removed, put in a walkin shower.
Also, convert their two car garage into a one car garage and an exercise room when it was too hot or too cold to ride his outside bike.

His original estimate was 10K, and he delayed signing the contract and it went to 15K. So he signed it, and the job was recently completed.

He lives in a small rural town in a blue state. The contractor is a long time friend and is signed up for rehab jobs for close to 2 years. Customers buy all materials and have them delivered at their cost. His charges are for planning, labor and any installations.

[dragnet2]

They’ll stop or slow down building new homes in an environment where there is already a huge housing shortage...

That would seem to indicated existing homes will likely hold their value.

[Grampa Dave]

“We were at post-2008 record highs in new home sales. down 32% Month-over-Month is more like a correction.”

A grandson was just informed by his landlord that the home he had a shared rental was just sold. It will not be available for student rentals at the end of this month. He will be a senior at the college in the town where the rental was

He and his 2 room mates rented that home for the past 3 college years.

His mother was/is a friend of the soon to be past owner. The friend said that they got an offer, that they could not refuse. Rentals, if they can be found are 2-3 times what they were this past year

The new home owners are graduates from this college. They can live anywhere and work online. They felt that their kids and they would be safer there and have a better life.

Apparently, this young couple are not by themselves.