New Home Sales Tumble 11.5% In September

[Purveyor]

Source: USA Today

WASHINGTON - Sales of new homes plunged sharply in September to the slowest pace in 10 months, as higher prices and slower overall economic growth weigh on the housing market.

The Commerce Department said Monday that new-home sales slumped 11.% last month to a seasonally adjusted annual rate of 468,000, the lowest level since November of 2014. September’s drop ended a two-month streak of accelerating sales.

Americans’ zeal for newly built homes took off this year — yet now appears close to having topped out. Solid hiring over the past three years has improved many family balance sheets, while rising home prices has returned equity to current homeowners now seeking to upgrade to new residential developments. Sales of new homes have soared 17.6% during the first nine months of 2015.

But global pressures began to exert a downward pull on economic growth in recent months.

Read more: http://www.usatoday.com/story/money/business/2015/10/26/new-home-sales-housing-prices/74620690/

[newthinking]

1. How much of the new home construction was from investment houses?

That is what is causing the extreme climbing and dropping. When they cut the capital gains rate they turned houses into a commodity. So what happens is that money from big investment firms cycles through different types of investments causing a bubble which when they move on to another form ends up bursting.

This is likely a sign that the investment firms are moving out. Then it is the regular people that get caught up in the after effects.

[houston16revival]

2. Economy is softening big time

You can feel it in the stores, the want ads. It's just sluggish.

[bigwillq]

3. Hello

Welcome to DU!

[TexasBushwhacker]

6. Howdy! I'm from Houston too! n/t

[puzzledeagle]

4. I wish that meant homes were getting cheaper in California

For some reason it shot up insanely high over the past several months, it's like the bubble is back again.

[cprise]

5. Clintonomics: Protect bankers, quantitative easing

...and carry on with "too big to fail".

If we have another economic crisis (with bankers holding a gun to our heads once again) the Democrats' legacy will be toast.

[Midnight Writer]

7. Buried in the story: New home prices increased 13.5%. Median price $296,000.

I have what I consider a comfortable income, and live in a pleasant middle class neighborhood, and I don't even personally know anyone with a $296,000 house.

My f'ing boss that I worked 35 years for (and who employed a staff of 60) doesn't own a $296,000 house. Of course, he provided all of his employees with health insurance, life insurance, retirement plans, paid vacations, paid sick leave, and professional counseling for those with personal problems (such as substance abuse or family issues or psychological problems), as well as a higher than average (for this area) salary.

I guess he didn't have his priorities straight.