After a disappointing (and surprise) slump in existing home sales, new-home-sales were expected to extend the very modest July rebound (+1.0% MoM) in August (+1.0% MoM exp) and they were right with new home sales rising 1.5% MoM (and July’s 1.0% MoM revised dramatically higher to a 6.4% MoM surge)
Source: Bloomberg
New home sales remain down over 24% year-over-year – the weakest in a decade.
Notably, the growth in new home sales was entirely driven by “homes not started”…
Source: Bloomberg
With “Completed” home sales at their lowest since 2016…
Source: Bloomberg
The SAAR of new home sales remains below pre-COVID levels…
Source: Bloomberg
And while sales dropped over 24% YoY, median new home price rose over 20% YoY…
Source: Bloomberg
Finally, we remind readers that homebuyer sentiment and homebuilder sentiment could not possibly be more divergent…
Source: Bloomberg
Can Jay Powell really afford to upset those homebuilders with his taper? What do homeowners know?