The National Association of Realtors (NAR) reports existing home sales unexpectedly fell 1.7% in November. The NAR originally reported a 1.9% gain on October, but that was revised lower to 1.5%.
Sales of homes in the $0-100,000 and $100,000-$250,000 range fell in all regions. Sales rose in all other price ranges except in the low-volume Northeast.
Sales of home under $250,000 account for 43.7% of sales in the Northeast, 66.7% in the Midwest, 54% in the South, but only 14.8% of homes in the West.
Inventory Yet Again
As is typically the case, NAR economic cheerleader Lawrence Yun complains about lack of inventory.
“The new home construction seems to be coming to the market, but we are still not seeing the amount of construction needed to solve the housing shortage,” Yun said. “It is time for builders to be innovative and creative, possibly incorporating more factory-made modules to make houses affordable rather than building homes all on-site.”
Housing Shortage Nonsense
There is no housing shortage. There is a shortage of houses that people can afford. Builders cannot build them if they wanted too, because they would lose money on them, provided they could get the land and the zoning changes in the firat place.
And of course quality would be crap.
Last Chance for Affordable Home
Following the housing bubble and crash, homes were moderately affordable for a couple years, say July 2010 to July 2012.
But the Fed was hell bent on producing inflation, and did. However, the Fed does not even realize it because housing prices are not in the CPI.
If Yun wants to piss and moan about something he ought to blame the Fed. But he really does not want lower prices as falling prices would not be good for the Realtors.
And during the crash, everyone wanted the Fed and government to "do something". The Fed did. Home prices are up where few can afford them.
Now Yun wants lower prices and more affordable home, but I assure you he will not be happy if he gets them because it will spell recession.
Mike "Mish" Shedlock