New Home Sales Plunge 16.6%

EconomicPolicyReview.com ^

[toaster]

Sales of new homes plunged 16.6% in January to a seasonally adjusted annual rate of 937,000, according to the Commerce Department. It is the the biggest percentage decline in 13 years.

The median price of a new home was down 2.1% year-over-year, at $239,800...

[mystery-ak]

Who buys a home in Jan in the middle of Global Warming?

[roaddog727]

Colder than normal winter and higher than normal snow-fall in the North would have a good bit to do with it I would have say.

[SkyPilot]

Between this and the stock market, we could be in for a bit of rocky economic news.

[LtdGovt]

The bubble is bursting?

[Fawn]

...and with El Nina coming!

[xcamel]

Oh yeah.. big crash...

[cinives]

I sold my old house last January, in the frigid NE. According to a lot of realtors I spoke with at the time, Jan 15th onwards starts a good selling season because its a good time to position a move at the end of the school year.

[Holicheese]

Its all Nancy Pelosi's fault. Ever since she took the gavel, home sales have fell.

[Always Right]

After a huge run up in the hottest housing market ever, it is not exactly shocking that things are coming down closer to levels more in line with the historical trend. Of course by cherry-picking data it is quite easy for the bubble heads to try to convince everyone the sky is falling. Of course looking at the regional data, the west did get hit pretty good. Home sales in the midwest though were actually up slightly.

[wireplay]

Just sold my home in Colorado, in the depths of the worst winter in memory. Set a record price for the neighborhood and it sold for 97% of ask. Took 2 months and sold on the only showing.

It depends on the house and the buyer. Overall trends in the country are not a very good indicator IMO for whether a given house will sell or not.

[Holicheese]

I sold mine at the same time in Peabody MA. I was never so happy. When I sold, we had very little snow on the ground. Who wants snowy salty boots tromping through the house?

[SF Republican]

Exactly; we had a report here in San Francisco a few months ago about this poor little lady that had tired to sell her house for two months and finally accepted a lower offer. From $900,000 to $850,000. In another report on the same story it was indicated she had paid $650,000 only two years earlier. Poor thing only made $200,000 in two years of equity.

[cinives]

Same. Altho, I'd rather have the snow than mud. I didn't permit the use of salt - I just made sure the walk and driveway was clear so I wouldn't have to worry about the mess.

[ErnBatavia]

Ripple effect - Lennar Homes division here in the desert is in the process of laying off 100 people.

[b4its2late]

Its all Nancy Pelosi's fault. Ever since she took the gavel, home sales have fell.

Yep.

[Eagles Talon IV]

The cherry picking of the stats is obvious. Home sales are comprised of 80% existing and 20% new. Since home prices got so out of wack it was to be expected that sales would slump as inventory built due to customers finally saying "enough" to rising prices. AS existing home sales lagged so then did new home sales since the majority, by far of new home purchases are made by those selling existing homes. Latest reports have existing home sales up a huge 3.0% in January and that makes 5 of the last 6 months that they have risen. As these numbers continue the new home market will likewise reverse and the new leg on real estate will begin.

[Holicheese]

We actually made people take their shoes off at the door.
It was a pain but no matter what, you still got stuff tracked in.
It took us almost 5 months and it was not a pleasent experience.
The worst part was when realtors brought an older person to the house. We lived in a townhouse with stairs...
One person said that the house was too clean and didn't have alot of personal things around. My fiancee was so mad she wanted to kill.

[Drango]

Yawnnnnnn...not breaking and a correction to the housing (or stock market is no big deal. It's expected and common.

[Night Hides Not]

Colder than normal winter and higher than normal snow-fall in the North would have a good bit to do with it I would have say.

roaddog, you're making too much sense. LOL!