by Mish
New Home Sales by Price – Percent Distribution
Price Discounts Coming Up
New Home Sales Details
- Seasonally adjusted, home builders are speculating on 284,000 homes without as sales contract.
- One year ago, builders had 241,000 homes in various stages of construction without a sales contract.
- Median sales prices fell 6.2% in the current period and is up only 0.4% from a year ago.
- Year-over-year new home sales are down 1.2%.
Amusing Headline
On August 15, CNBC’s Diana Olick reported Homebuilder Sentiment Soars on Strong Sales
- U.S. homebuilders bounced back from a recent funk, as current sales and sales expectations leaped forward.
- The National Association of Home Builders/Wells Fargo Housing Market Index now stands at 68. Anything above 50 is considered positive sentiment.
- Builders say they are seeing rising demand from buyers, who seem ready to pay a premium for new construction.
Home Builders In Trouble?
It might be a bit early to make that call, but in general, builders build until they go bust, turning most bullish at the top.
At a minimum, builders will have to offer steep discounts to unload inventory.
Mike “Mish” Shedlock
