Posted on 01/26/2023 8:12:53 AM PST by Kaiser8408a
The December new home sales report is good news and bad news.
The good news? US new home sales rose by 2.3% in December from November to 616k units sold SAAR. That is the good news.
The bad news? Since December of 2021, new home sales fell -23% year-over-year (YoY).
The median price of new home sales rose 7.8% YoY, but the trend as The Fed withdraws monetary stimulus (orange line) is not good.
Perhaps there is a communications breakdown between the Biden Administration and The Federal Reserve.
(Excerpt) Read more at confoundedinterest.net ...
Low and Median priced buyers have dropped out completely.
Only rich people are still buying.
Because they’re the only ones that can.
And the homes that the low and median priced buyers could buy are either rentals or becoming rentals.
In my neck of the woods, two large townhome developments are nothing but rentals. Nice looking places from the outside.
I asked a friend of mine if he wanted to flip a house. We’re both construction guys. He said it would be very difficult as the corporations are snatching up everything.
Blackrock gotta make that money.
This one number, it’s EVERYTHING!!!
Things are going just like they HAVE to go, stop whining trying to get clicks.
“He said it would be very difficult as the corporations are snatching up everything.”
They’ve keeping the market from crashing more, horrors.
Everything is always someone’s else’s fault. It can’t be flipping season all the time. The time for flipping is coming, just not quite yet. When it comes, those corporations will buy all those flipped houses. We still have a housing shortage.
Corporations have a longer time horizon than individuals, who have no patience with the fact the economy goes through its cycle no matter what we’d like to see it do.
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