New Home Sales Are Down But Inventories Are High
EDITOR'S NOTE: New home sales rose in October, but Zero Hedge reports that this pleasant surprise “hid the dramatic downward revisions of prior data.” For example, September's +14.1% MoM was significantly revised to just +7.1% MoM). This is what is dominating the housing market narrative in late 2021. New home sales continue to be strong. “There were 389,000 new homes for sale as of the end of October, the most in 13 years.” The author asks at the end of the piece whether, in light of these recent developments and Jerome Powell’s re-nomination, “How are you going to let these homeowners down gently Mr. Powell?”
New home sales rose 0.4% MoM (better than the expected unchanged print), but this hid the dramatic downward revisions of prior data (September's +14.1% MoM spike smacked down to +7.1% MoM). New home sales remain down over 23% YoY...
Source: Zero Hedge via Bloomberg
The downward revisions dominated the narrative...
Photo: Zero Hedge
This pushed the New Home Sales SAAR to 745k - the highest since April.
Source: Zero Hedge via Bloomberg
There were 389,000 new homes for sale as of the end of October, the most in 13 years -- though 28% of those houses were not yet started. At the current sales pace, it would take 6.3 months to exhaust the supply of new homes, compared with 3.6 months at the start of the year.
Photo: Zero Hedge
Sales SAAR has been dropping as prices have soared...
Photo: Zero Hedge
As Mean and Median home prices hit record highs...
Photo: Zero Hedge
How are you going to let these homeowners down gently Mr.Powell?
Originally posted on Zero Hedge.
