The Bloomberg consensus estimate for new homes sales was an overly optimistic 518,000. Instead, it's bad news again, as new home sales fell a very steep 11.4% to an annual rate of 481,000. Here are the stats:
New home sales -11.4%
New homes sales in South - 5.8%, West -3.4%, Midwest +5.6%, -33.3% Northeast
Median price fell 1.5% to $277,400.
Year-on-year, the median price is down 1.7%.
Sales are up 19.4% year over year, a discrepancy that points to price discounting by builders.
Today's report echoes last week's housing starts and permits data. Overall, it points to stubborn weakness in the new homes market.
New Home Sales in Thousands
Above: New Home Sales table from Census.Gov.
Single Family Home Sales
Everyone seems to expect a return to the bubble years even though it's pretty clear where the range really belongs. Demographically speaking, as boomers age, their houses will add to existing supply as they downsize, then pass away.
For more of Mish's insights and opinions on markets in the US and across the globe, follow this link to Mike Shedlock’s blog.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer