New Home Sales, Inventory Chart: You're Going the Wrong Way!

The direction of the curve and the bars in the chart below are starting to remind me of John Candy's late night driving adventure in Planes, Trains, and Automobiles.

CNN reports:

New home sales fell in March to the lowest level in more than 16 years, according to a key government report on the battered housing market released Wednesday.

March sales came in at a seasonally adjusted annual rate of 526,000, the Census Bureau report showed, down 8.5% from a revised 575,000 in February and down 36% from a year earlier. It was the lowest annual rate since October 1991.
...
The median price of a new home sold in March was $227,600, down 13.3% from a year earlier. The last time the median home price fell this sharply was July 1970, when it dropped 14.6%.

Thursday's report "paints the picture that the downturn in the housing market continues," said Scott Anderson, senior economist at Wells Fargo.

Yes, the downturn in the housing market continues. What an insightful comment. Is that the best they could do at CNN? Why bother with getting a quote? The downturn continues?

Comments

[Griz:]

How about "repent ye speculators" or "mean reversion walks among us" or how about "renters unite"...

2008 Apr 28 09:03 AM

[Urbane Gori...:]

Fascinating that the homebuilders are actually picking up steam!!!!

Thx jegan

2008 Apr 28 11:04 AM

[Matt Blackman:]

Yes it is fascinating that homebuilders are picking up steam. It isn't the first time investors jumped the gun (look at the last big rally in $HGX (Philadelphia Housing Index) when the index jumped from 187 in July 06 to 257 in February 2007 only to plummet again).

Is this one different or just another bull trap rally? You be the judge but take a look at the difference between housing starts and the annual sales rate of new homes as a guide...

2008 Apr 28 01:52 PM

[Bad_Writers:]

Everyone wants to claim that they were the first to see the situation improve.

2008 Apr 28 05:48 PM

[drmalaka:]

What an amazing chart. These stocks should all be buys. If they keep building new homes and sales continue at this horrible pace then the home builders are going to corner the market, just like the Hunts did in silver and those Duke dudes tried to do in Trading Places. So long as Eddie Murphy does not show up and ruin everthing these home builders are going to make trillions.

2008 Apr 28 09:09 PM

[Abraham:]

Excellent article. The parallel to the time preceding the last Great Depression is instructive. Visit RunOnTheBank.org to learn the latest information about the impending Second Great Depression. This is the era of drastic change in how we view ourselves and the world. We can no longer tolerate the "Me-too" attitudes and behavior of most politicians. The Republican party is almost the same as the Democratic party. Elections measure more of the "anti" than "pro" sentiment. When is the last time you really found a politician you could honestly support? Most thinking people are forced into voting for the "lesser of two evils". This was never the spirit or intent of our founding framers. A vote for the "lesser of two evils" is by definition a vote for evil. We need to get involved and kick the selfish and greedy out of the "representative" BUSINESS. RunOnTheBank.org discusses actions YOU can take to protect YOU, your family and friends and neighbors. The first requireement is recognition of our serious economic problems. the second is action. WHO is responsible? ALL OF US ARE INDIRECTLY RESPONSIBLE for allowing BANKERS, Wall Street and other powerful interests to control our economy. JUST SAY NO---- If each one of us can immediately withdraw ALL funds from banks, Close all pension accounts and transfer money AWAY from BANKS AND LOAN companies, and Wall Street stocks. Where do you place the money---ANYWHERE BUT WITH BANKS. They get free FED money that you pay for and REFUSE TO PAY You interest on your savings and investments? They MUST have reserves. Banks will be caught sooner then later with INADEQUATE reserves. The ratio in Fed Reserves is supposed to be 7-10:1 Instead, lax accounting definitions have allowed commercial and Investment banks to leverage money out to 40:1. The Fed is silent about this secret. If we pull out our money, that will be forced to either go bankrupt or start following the law. Visit RunOnTheBANk.org for more information Remember DEBT IS NOT WEALTH. Walk or run from debys or pay them off - your moral choice---but in either case---banks MUST be held accountable for their behavior, much of it criminal.

2008 Apr 29 12:53 AM

[miscaxg:]

PerfectStorm,

I know it is late (or early?), but step out of it man, you must have tripped and hit your head! "Bush (Cabal) government?", are you talking of the same Bush government which proclaimed crusades a couple of years ago? Instead of sucking on your cheap beer and then bitching afterwards, get off of your butt and vote for the responsible politicians (like Ron Paul), next time around. Looking for the goat, won't get you anywhere, wise up dude... :-(

2008 Apr 29 05:37 AM

[sujo:]

blah, blah, blah, some people just like to hear themselves talk

2008 Apr 29 10:52 AM

[PerfectStorm:]

miscaxg:

Is Ron Paul (still) running? Where is he running to? Does he have a ticky? No ticky, no runny!

2008 Apr 29 01:07 PM

[PerfectStorm:]

Has anyone around here (besides misaxg) seen my post about Greenspan and the Grand Depression? Are Americans gonna let the guilty escape unpunished? Is Yahweh gonna let 'em get away unpunished? No way, Jose!

2008 Apr 29 01:10 PM

[PerfectStorm:]

SOMEONE is gonna separate the goats from the sheep (NOT the sheeple!)

2008 Apr 29 01:12 PM

[PerfectStorm:]

PS PerfectStorm has been known as GodSend! ;)

sol-godsend.blogspot.c...

2008 Apr 29 01:14 PM

[PerfectStorm:]

PPS God has been known to Send the Perfect Storm! ;) Look out, below!

2008 Apr 29 01:19 PM

[PerfectStorm:]

God usually Sends the Perfect Storm, when (and where) it's least expected! :)

2008 Apr 29 01:25 PM

[PerfectStorm:]

Is the American Housing industry experiencing the Perfect Storm? You betcha! (The worst is still to come, however)

2008 Apr 29 01:26 PM

[PerfectStorm:]

"There will be gnashing of teeth"

2008 Apr 29 01:28 PM

[PerfectStorm:]

Anyone around here Seeking Alpha (and Omega)?

"Seek and you shall find!"

2008 Apr 29 01:32 PM

[PerfectStorm:]

Ooops - here comes the man with the big broom. Time to go. Later...

2008 Apr 29 01:34 PM

[PerfectStorm:]

Cyberspace censorship has redefined the meaning of Post Mortem! ;)

2008 Apr 29 01:50 PM

[PerfectStorm:]

Tim must be away, checking the latest Sales:Inventory spread. Yes, Tim, the spread will get bigger and bigger. There is just no containing the expanding foreclosure bubble.

2008 Apr 29 01:55 PM