Following the small MoM blip higher in existing home sales (though dismal YoY plunge), new home sales were expected to rebound in October (after plunging 5.5% MoM in September) but instead they utterly collapsed - crashing 8.9% MoM.
Relax guys. The only reason housing is taking a setback is because home builders with their limited capacity, mostly built more profitable high end homes. The shortage of homes has not gone away by any means. Builders will focus more on middle priced homes, and eventually on lower priced homes. The key variable is availability of loans. If loans are not readily available for the middle class and first time buyers, the home shortage will only get worse, and rents will continue to rise. Obviously, the median home prices will be affected as more lower priced homes are sold. It won't mean home prices are on a general decline.
patrick.net
An Antidote to Corporate Media
1,192,024 comments by 13,864 users - askmeaboutthesaltporkcure, RayAmerica online now