US Housing Recession Worsens As New Home Sales Collapse
New US home sales plunged in July, closely watched data out Tuesday showed.
The 511,000 annual rate was the slowest since January of 2016 and fell woefully short of the 575,000 pace economists expected.
Thanks to an upward revision to April's data, last month's 12.6% monthly drop counted as the largest since February of 2021. It was the sixth decline in seven months (figure below).
Figures for both May and June were revised lower.
Tuesday's release was the latest in a spate of unfortunate
It is really obvious that many leading indicators in the economy are weaker and turning down- housing, inventories (up is weaker), oil & gas companies great performance (late cycle indicator), inverted yield curve, wider credit spreads, Fed tightening. We got it all going on. So, if Larry and Muhammed want to bloviate about how far behind the FOMC is tune it out. It is noise.
H-Man, while housing is slowing, it also creates a benefit that buyers who have been locked out of the market due to sky rocketing prices may find solace in lower prices. But I suspect that pent up buyer demand will also create a floor for home pricing. In Orlando my neighbor listed at market in June, when he cut the price by 15% from the original listing price, it finally sold yesterday.