forget which end of the seesaw you are sitting upon...
The sales number are up, a lot...
Since February, new home sales are up an incredible 49.1%
That month marked the fewest new homes sold since the government began keeping track in 1963.
but from the trough they are not up by much.
Many reports also tell U.S. that average sale prices are down by 10%
That is misleading to U.S.
First, that is the "average price sold", not same or similar home price changes like with ASU or Case-Shiller.
Second, that probably is bcuz "new buyers of homes" are younger and less able to buy expensive home, driving the average down.
Third, according to a prior report, many more sellers discounted their asking prices by much more last month than previously.
Fourth, the total inventory of "homes for sale" is way up, but the inventory of NEW homes for sale is way down.
There were 211,000 new houses on the market at the end of April, the fewest since 1968
What that tells U.S. is that there was a flood of new existing homes trying to use the Buyer Tax Credit.
Now that they know that they cannot use it to sell their homes, what will they do?
Withdraw back from the market, try a short sale, and/or eventually walk away?
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IF your chart appears cut off...
go to the FinFacts and/or the Atlantic articles for the full views.
IF your chart appears cut off...
go to the FinFacts and/or the Atlantic articles for the full views.
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New US home sales jumped in April in advance of a tax credit expiry
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New Home Sales Up 14.8% in April
Since February, new home sales are up an incredible 49.1%. This sounds wonderful, but once the influence of the buyer credit wears off, a brutal hangover in May will likely follow.
As impressive as the rise from February sounds, it needs to be taken in context. That month marked the fewest new homes sold since the government began keeping track in 1963. Even April's huge rise to 504,000 looks pretty pathetic compared to the housing boom numbers:
As you can see, April's new home sales are the highest in almost two years -- since May 2008. The number also represents a 47.8% increase over April 2009, a year earlier. So if this trend continues, then that would be good news for construction jobs.
The red line is the Mortgage Bankers Association index, and the bright green line shows its level during the week ending May 21st. Mortgage applications for purchases are now at a level not seen since April 1997.
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Bloomberg
U.S. Economy: Home Sales, Durable Orders Point to Strength
Mortgage Applications
Another report today from the Mortgage Bankers Association showed sales slowing this month. The Washington-based group’s index of home-purchase applications fell for the third straight week, to the lowest level since 1997.
The surge in purchases helped draw down inventory. The supply of homes at the current sales rate dropped to 5 months’ worth, the lowest level since December 2005, from 6.2 months in March. There were 211,000 new houses on the market at the end of April, the fewest since 1968.
Median Price
The median price of a new home decreased to $198,400, the lowest level since December 2003. The jump in sales was concentrated in houses costing less than $300,000, perhaps reflecting demand from first-time buyers
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New home sales soar 15% in April
April was the second straight month of increases.
In March new home sales snapped a four-month losing streak and
surged at the fastest single-month rate in 47 years
as homebuyers snatched up properties ahead of the looming deadline 4-30 for the tax credit.
the median price of new homes sold in April was $198,400, down almost 10% from March from April 2009.
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