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New Home Prices at Record High While New Home Sales Low

New Home Sales
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EDITOR NOTE: As anyone looking for a new home knows, pricing in the housing market just keeps going up. However, the numbers on home purchases are not matching this stratospheric market rise. Experts expected a big jump in new home sales in July, based on rising existing home prices and soaring stocks for homebuilders, but the numbers (1.0% growth) came in well under the projected 3.1%. In the Northeast and Midwest, new home sales dropped dramatically. The South and West carried the tiny amount of growth. Housing prices are now “decoupled from reality,” and the housing bubble making Wall Street types rich these days may be on the verge of collapse.

Following yesterday's surprising rise in existing home sales (as existing home prices top new home prices and homebuyer sentiment crashes), analysts expected a big rebound in new home sales also in July (after three straight months of ugly declines). New Home Sales did rise in July, but only 1.0% MoM (well below the 3.1% MoM jump expected). Notably, the big drop in June was also revised up from -6.6% to -2.6% MoM. Interestingly that miss also helped send the year-over-year change in home sales down 27.2%!

New Home Sales

Source: Bloomberg

 

New home sales are hovering at their lowest since April 2020, as median new home prices reach a record high...

New Home Sales

Source: Bloomberg

The YoY surge in median new home prices rebounded dramatically...

New Home Sales

Source: Bloomberg

New Home sales were ugly in Northeast and Midwest, where they dropped -24.1% and -20.2% sequentially but rose 1.3% in the South and 14.4% in the West.

Finally, there's this. As US housing market data has serially disappointed this year, US homebuilder stocks have soared back to record-er and record-er highs...

New Home Sales

Source: Bloomberg

Decoupled from reality? Or pricing in a nirvanic future of borrow-money-for-free Wall Street landlords and a return to serfdom for the rest of us?

Original post from Zero Hedge

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