The census reported new home sales for February came in at a Seasonally Adjusted Annual Rate (SAAR) of about 308,000 versus expectations of 315,000. That's 13% below last February...when the world was literally wondering if there would continue to be a credit market. Months of supply continues to trend up from last summer and fall's numbers.
As AlphaNinja readers are aware, NEW home sales cannot budge until EXISTING home sales work off their huge inventory overhang, discussed here just yesterday.
"Until the excess inventory is worked off, new home construction and the huge chunk of our economy dependent on it will remain depressed..."New home sales account for less than 10% of the inventory of existing homes on the market. And as many will tell you, there's plenty of homes on the same block that would be for sale, once neighbors are able to sell their own. Only time can heal this overhang.
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