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More on the New Home Sales miss: Sales fell 8.4% from May and gained 15.1% from June 2011....

More on the New Home Sales miss: Sales fell 8.4% from May and gained 15.1% from June 2011. Median sales price of $232.6K (lowest since January), -3.2% Y/Y, market had been expecting a gain. Months supply rises to 4.9 from 4.5 in May (6.6 one year ago). (report)
Comments (7)
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    Rising inventory, lower than expected sales - bad combination for future buildouts.
    25 Jul 2012, 10:27 AM Reply Like
  • divinecomedy
    , contributor
    Comments (466) | Send Message
     
    But, but, but, the housing market is supposed to be recovering or bottoming out or what have you....
    25 Jul 2012, 10:35 AM Reply Like
  • mfritz095
    , contributor
    Comments (21) | Send Message
     
    Yeah, prices were up Y/Y for the first time since 2007. Worst was over. Let's see, that lasted what, 24 hours?
    25 Jul 2012, 11:03 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    And to quote me for the last 4 months ! "the pool of buyers will shrink over the next few months as there is no equity or mobility for future buyers ! "

     

    Those who could take advantage of the wonderful low rates did !
    25 Jul 2012, 12:07 PM Reply Like
  • Tack
    , contributor
    Comments (12781) | Send Message
     
    New-home sales represent less than 10% of the market. It's not clear from a single month what the future trend may be, but another down month next month would be significant.

     

    Similarly, existing-home sales have been trending higher slowly, but next month could be significant:

     

    http://bit.ly/Nv2lPK
    25 Jul 2012, 01:19 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Tack, this is not the first month for new home sales and more important. New home sales mean jobs. Higher paying construction jobs and the rates is still solidly in the 12%s and that isn't counting the non-lookers. Plus,all the secondary business as appliances and furniture etc..

     

    Much more than older homes...And, the banks still have a huge shadow inventory in many areas and they don't want to put them up or prices will drop big again !

     

    And, the comps are not off the old days #s ,but, the reduced 2007 #s... Tack, we go back... If we had 30 year rates like today we would own our blocks. Not just our homes ! DL
    25 Jul 2012, 05:14 PM Reply Like
  • jhooper
    , contributor
    Comments (5349) | Send Message
     
    This is important to watch. Based on what I have read in Fed minutes and Q&A, BB seems to think housing is the key to employment (one of his mandates). It could be that the housing numbers spur him into action, so a break in the slight uptrends could be very important with regards to Fed action. Of course, then, how much of a downtrend would it take to make BB nervous?
    25 Jul 2012, 02:00 PM Reply Like
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