U.S. New Home Sales Drop 33% in May, to Record Low
Started by alanhart
almost 16 years ago
Posts: 12397
Member since: Feb 2007
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[Sorry if this has already been posted] http://www.nytimes.com/2010/06/24/business/economy/24home.html?hp Sales of new homes dropped to a record low in May, showing just how much the market has been dependent on a federal stimulus program, according to new government figures released Wednesday. The Commerce Department figures showed that new single-family homes sold last month at a seasonally... [more]
[Sorry if this has already been posted]
http://www.nytimes.com/2010/06/24/business/economy/24home.html?hp
Sales of new homes dropped to a record low in May, showing just how much the market has been dependent on a federal stimulus program, according to new government figures released Wednesday.
The Commerce Department figures showed that new single-family homes sold last month at a seasonally adjusted annual rate of 300,000, down 32.7 percent from the revised April rate of 446,000.
Analysts had expected sales to fall to about 400,000 in May after a government tax credit for new buyers expired at the end of April. Many said the actual figure was exceedingly low.
“That new home sales would decline in May following the expiration of the home buyers credit is not at all surprising,” said Dan Greenhaus, chief economic strategist for Miller Tabak, in a research note. “However, we would be lying if we said the size of the drop was not shocking.”
Mr. Greenhaus said the 32.7 percent drop was the largest since the government started compiling the data in 1963, surpassing the 23.8 percent decline in January 1994. The May sales rate is 18.3 percent below that of May 2009, when the figure was 367,000.
Home sales can offer insight into the state of the economic recovery because of their implications for consumer spending and the way they reflect the health of the job market. The news followed a weak report on Tuesday about existing home sales, which also fell in May compared with April.
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Response by marco_m
almost 16 years ago
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ericho ?
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Response by Riversider
almost 16 years ago
Posts: 13573
Member since: Apr 2009
There's a huge inventory of REO property. Why are these developers creating more NEW housing, and why is the government offering tax breaks to builders to create more over-supply. We should have close to zero new housing for the next twelve months until the inventory clears. Strong numbers make no sense and should not be artificially stimulated. Did the article talk about resales?
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Response by jason10006
almost 16 years ago
Posts: 5257
Member since: Jan 2009
bullish!
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Response by Wbottom
almost 16 years ago
Posts: 2142
Member since: May 2010
New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963. And it's the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.
bullish: this is good for the economy generally, good for wall street, and good for nyc re
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Response by alanhart
almost 16 years ago
Posts: 12397
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You can almost taste the upside potential.
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Response by LoftyDreams
almost 16 years ago
Posts: 274
Member since: Aug 2009
A lot of people outside New York don't want to buy a 'used' house. And so much of the economy is built on that piece of the American dream. An economist friend in Washington told me the mortgage tax credit is the biggest government entitlement program by FAR.
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Response by Riversider
almost 16 years ago
Posts: 13573
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It was very expensive, especially considering that everyone who qualified recieved it but only a fraction bought because of it. Basically you paid 100 people money for so that 5 out of 100 would become the marginal buyer.
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Response by w67thstreet
almost 16 years ago
Posts: 9003
Member since: Dec 2008
I don't know man... the bullz on the other thread makes me nervous.... I MEAN why hasn't inventory picked up in NYC if new homes sales in rest of America is down 33%... I mean there isnt' like a lag factor or something?
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Response by Wbottom
almost 16 years ago
Posts: 2142
Member since: May 2010
dude...don't you know it's the inventory-sales delta??...
get out from under the shadow, man
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Response by memito
almost 16 years ago
Posts: 294
Member since: Nov 2007
Haven't you learned that NYC is different than the rest of the US..
Jeez!
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Response by alanhart
almost 16 years ago
Posts: 12397
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We are a small island with many people and very few natural resources.
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Response by w67thstreet
almost 16 years ago
Posts: 9003
Member since: Dec 2008
Ya mean like this too euro trash effeminate borker in downtown who said (i quote verbatim) "Don't try to understand the NYC RE mkt, it can't be explained." .... i take this to mean, Supply/Demand laws are exempted in NYC, like an episode of LOST.
delta as in the nile delta?
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Response by Riversider
almost 16 years ago
Posts: 13573
Member since: Apr 2009
New Home sales compete with Foreclosure inventory. NYC doesn't have that....
ericho ?
There's a huge inventory of REO property. Why are these developers creating more NEW housing, and why is the government offering tax breaks to builders to create more over-supply. We should have close to zero new housing for the next twelve months until the inventory clears. Strong numbers make no sense and should not be artificially stimulated. Did the article talk about resales?
bullish!
New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963. And it's the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.
bullish: this is good for the economy generally, good for wall street, and good for nyc re
You can almost taste the upside potential.
A lot of people outside New York don't want to buy a 'used' house. And so much of the economy is built on that piece of the American dream. An economist friend in Washington told me the mortgage tax credit is the biggest government entitlement program by FAR.
It was very expensive, especially considering that everyone who qualified recieved it but only a fraction bought because of it. Basically you paid 100 people money for so that 5 out of 100 would become the marginal buyer.
I don't know man... the bullz on the other thread makes me nervous.... I MEAN why hasn't inventory picked up in NYC if new homes sales in rest of America is down 33%... I mean there isnt' like a lag factor or something?
dude...don't you know it's the inventory-sales delta??...
get out from under the shadow, man
Haven't you learned that NYC is different than the rest of the US..
Jeez!
We are a small island with many people and very few natural resources.
Ya mean like this too euro trash effeminate borker in downtown who said (i quote verbatim) "Don't try to understand the NYC RE mkt, it can't be explained." .... i take this to mean, Supply/Demand laws are exempted in NYC, like an episode of LOST.
delta as in the nile delta?
New Home sales compete with Foreclosure inventory. NYC doesn't have that....
Not manifest, any way.