New Home Sales Jump to 901,000 SAAR
The Commerce Department’s New Residential Sales Report shows sales of new single-family houses in July 2020 were at a seasonally adjusted annual rate of 901,000.
Surge Led By the Midwest
The Midwest region led the way with and amazing 58.8% jump. Year over-year, the Midwest is up 81.4%.
By Region Month-Over Month Sales in Thousands SAAR
- US: 901
- Northeast: 40
- Midwest: 127
- South: 513
- West: 221
By Region Month-Over Month Percentages
- US: +13.9%
- Northeast: -23.1%
- Midwest: +58.8%
- South: +13.0%
- West: +7.8%
By Region Year-Over Year Percentages
- US: +36.3%
- Northeast: +25.0%
- Midwest: +81.4%
- South: +27.6%
- West: +40.8%
Unadjusted Numbers
On an unadjusted basis there were 78,000 newly homes sold during July vs 75,000 in June. In July 2019 there were 55,000 new homes sold.
Those 75,000 new home sales were reported as 901,000.
Seasonal Adjustments went haywire but amazingly cheap money from the Fed sure helped, assuming you have a job.
Mish
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These 10 cities are the most affordable places to live if you work in tech number 5
That list is why silicon valley, Denver, seattle, austin and San Diego have nothing to worry about.
Just added this important note:
On an unadjusted basis there were 78,000 newly homes sold during July vs 75,000 in June. In July 2019 there were 55,000 new homes sold.
Those 75,000 new home sales were reported as 901,000.
If NYC is any indication, there’s a bid for any SFH with a yard that’s far from the city.
The descrepancy in number between the “South” and everyone is raw new home sales is pretty amazing.
Nice homes in Cedar Rapids IA can be had for $250k. Iowa City area with the University, $300k to $350k. Equivalent home in Rancho Cucamonga CA is $600k and in Los Angeles over $1 Million.
The pricing seems appropriate. It’s better living in SoCal, wouldn’t you agree neighbor?
I do but I also think it’s circumstantial and subjective.
Pensioners absconding and fleeing the cities. Shysters buying up ahead of the hordes using free money.
“amazingly cheap money from the Fed sure helped,”
…
lowest rates ever in July.
Meanwhile ….
……
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 90 percent of apartment households made a full or partial rent payment by August 20 in its survey of 11.4 million units of professionally managed apartment units across the country.
This is a 2.1-percentage point, or 237,056 -household decrease from the share who paid rent through August 20, 2019 and compares to 91.3 percent that had paid by July 20, 2020. These data encompass a wide variety of market-rate rental properties across the United States, which can vary by size, type and average rental price.
Households higher up the food chain – aka those likely to buy homes – are more likely to still have (high pay) job + opportunity to work remote = plenty of opportunity to visit open houses of new developments (away from urban virus areas).
Might not be a bad strategy if you’re broke. Get the government on the hook for your house, and they won’t kick you out before the depression is over.