Tuesday, May 24, 2016

More bad news on housing


This doesn't look good, only at an 8 year high in new home sales... looks like we are really going down the tubes.






5 comments:

Tom Hickey said...

With interest rates this low for so long, and this long into a "recovery" after the previous official recession, it is a very pessimistic sign of the times.

Matt Franko said...

I know Tom... we should be seeking to get this number back up to where it was when everybody was buying spec houses with NINJA loans they bought to flip... that would be a lot better economy...

I guess the clever neo-liberal conspirators have been deviously scheming for years to suppress this phenom of new home sales... those bastards!

Bob said...

The people have no munnie. Better lend them more munnie...

Tom Hickey said...

Maybe the lag has something to do with owner/worker share and incomes. The top of the town as walked away with almost all the wealth generated over that time period. Even with low rates apparently a lot of people can't afford the monthly nut. Rentals are soaring though.

Matt Franko said...

"Rentals are soaring though."

That is all they have been building in my area Tom...

Look at the report upthread there is an emerging shortage in single family... with the oil rent still coming out people are starting to buy and the rates are low...

This is the kind of effect you get when huge rent is removed meanwhile leading flow is up and steady...

they could lose this thing to the upside pretty quickly imo...

leading flow increases about $50B/year/1 percent increase in the risk free rate so if they get back to 3% we'd be looking at about a +250B annual in interest income in USD system vs. last year... theyre all going to be going all around yelling "inflation!" everywhere.... fuhgettaboudit....