- This topic has 28 replies, 14 voices, and was last updated 16 years, 11 months ago by
pencilneck.
-
AuthorPosts
-
May 24, 2007 at 10:30 AM #54743May 24, 2007 at 10:30 AM #54757
cr
ParticipantKey words:
“in April”
“April compared to March”
“new home”Month to month is meaningless, we all know that, and new homes are a fraction of sales. Sales appear up because last month was horrendous, and prices are down. Look at prices/sales from a year ago and I’ll bet it’s a different story.
These guys only hear what they want to hear anyway, this is from MSN:
“At least one analyst took a glass-half-full view. “The report (on new-home sales) starts to seal the argument that the housing market is beginning to stabilize, at least in terms of demand,” Richard DeKaser, the chief economist for National City, told Bloomberg News.
Right…that of course is dependent on the pipe dream:
“Analysts are hoping that spending by consumers and businesses will be able to overcome the weakness in housing and keep the country out of a recession.”
Problem is people have no more money, no more equity, no more savings.
It’s over. These people just refuse to accept it.
May 24, 2007 at 10:41 AM #54750SD Realtor
ParticipantI don’t think it is that big of a deal to get worked up over. The media is always going to misrepresent the situation regardless of whether it is housing, the war, pretty much anything.
We all know what is really going to happen. It is just going to run it’s course in due time.
SD Realtor
May 24, 2007 at 10:41 AM #54765ParticipantI don’t think it is that big of a deal to get worked up over. The media is always going to misrepresent the situation regardless of whether it is housing, the war, pretty much anything.
We all know what is really going to happen. It is just going to run it’s course in due time.
SD Realtor
May 24, 2007 at 10:41 AM #54752Troubled Loner
ParticipantNew home sales stats are a joke because what is counted as a sale is when someone makes their initial agreement and deposit. It does not take into account that many of the buyers will not follow through with their purchase. With cancellations running as high as ~35%, the stats are meaningless.
May 24, 2007 at 10:41 AM #54767ParticipantNew home sales stats are a joke because what is counted as a sale is when someone makes their initial agreement and deposit. It does not take into account that many of the buyers will not follow through with their purchase. With cancellations running as high as ~35%, the stats are meaningless.
May 24, 2007 at 10:56 AM #54754poorgradstudent
ParticipantBuilders slashed prices to move inventory. Buyers, faced with the choice of a resale home, or a new home at a lower price, “shockingly” chose the new homes.
To me the key takeaway is the slashing of prices, not the increase in sales. A decrease in price is expected to yield an increase in demand by the laws of economics.
May 24, 2007 at 10:56 AM #54769ParticipantBuilders slashed prices to move inventory. Buyers, faced with the choice of a resale home, or a new home at a lower price, “shockingly” chose the new homes.
To me the key takeaway is the slashing of prices, not the increase in sales. A decrease in price is expected to yield an increase in demand by the laws of economics.
May 24, 2007 at 11:15 AM #54760AK
ParticipantCalculated Risk notes that March sales looked encouraging too but were then revised downward. Quite a bit downward.
Anyway it’s nice to read some thoughtful discussion of the new home sales numbers rather than the monthly “these numbers are stupid and useless, why do we even report them” post that appears on another prominent housing blog 🙂
May 24, 2007 at 11:15 AM #54775ParticipantCalculated Risk notes that March sales looked encouraging too but were then revised downward. Quite a bit downward.
Anyway it’s nice to read some thoughtful discussion of the new home sales numbers rather than the monthly “these numbers are stupid and useless, why do we even report them” post that appears on another prominent housing blog 🙂
May 24, 2007 at 11:54 AM #54770kewp
ParticipantUh, this is good right? I.e., it takes increasing sales w/decreasing prices to accelerate the correction?
I would think once folks see that in order to move inventory they have to make steep reductions for the effect to snowball until it bottoms out.
May 24, 2007 at 11:54 AM #54785ParticipantUh, this is good right? I.e., it takes increasing sales w/decreasing prices to accelerate the correction?
I would think once folks see that in order to move inventory they have to make steep reductions for the effect to snowball until it bottoms out.
May 24, 2007 at 12:04 PM #54776pencilneck
ParticipantSales are up on a month to month basis, but sales of new homes are still down 11% YOY. The headline is, of course, highly misleading.
“WASHINGTON (AP) — Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record. The mixed signals left no clear picture of whether the worst of the nation’s housing slump is over.”
The only mixed signals are deliberate and coming from the press.
May 24, 2007 at 12:04 PM #54791ParticipantSales are up on a month to month basis, but sales of new homes are still down 11% YOY. The headline is, of course, highly misleading.
“WASHINGTON (AP) — Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record. The mixed signals left no clear picture of whether the worst of the nation’s housing slump is over.”
The only mixed signals are deliberate and coming from the press.
-
AuthorPosts
- You must be logged in to reply to this topic.