U.S. new home sales drop for second straight month

[mahatmakanejeeves]

Source: Reuters

BUSINESS NEWS JUNE 25, 2019 / 10:05 AM / UPDATED 11 MINUTES AGO
U.S. new home sales drop for second straight month

WASHINGTON (Reuters) - Sales of new U.S. single-family homes unexpectedly fell for a second straight month in May, suggesting lower mortgage rates had yet to provide a boost to the struggling housing market.

The Commerce Department said on Tuesday new home sales dropped 7.8% to a seasonally adjusted annual rate of 626,000 units last month, the lowest level since December. April’s sales pace was revised up to 679,000 units from the previously reported 673,000 units.

Economists polled by Reuters had forecast new home sales, which account for about 10.5% of housing market sales, would rise 1.9% to a pace of 680,000 units in May.

New home sales are drawn from permits and tend to be volatile on a month-to-month basis. Sales fell 3.7% from a year ago. ... The median new house price declined 2.7% from a year ago to $308,000 in May.
....

Read more: https://www.reuters.com/article/us-usa-economy-housing/u-s-new-home-sales-drop-for-second-straight-month-idUSKCN1TQ1SU?il=0

[Renew Deal]

1. How much money do people lose in Trumps tax scam?

[Iliyah]

2. Low rates?

Where? Girlfriend of mine insurance for her home of 3 years went up $100.00. Therefore her house payments went up.

People working two or more jobs just to make ends meet with no healthcare coverage and retirement plan. Sick time is minuscule if the employer even allows it with pay.

Cost of living is on the rise. Unemployment is on the rise.

[groundloop]

3. I'd like to know what effect the tax overhaul had on new home sales

The new tax code essentially eliminated writing off mortgage interest I have to imagine that some people will chose to rent since there's no longer any financial incentive to buy a house. I'd have thought that the NAHB would have raised holy hell over that change.

[ScratchCat]

4. This is NEW home sales

Not home sales in general. The kind of people who buy NEW homes are not going to rent. At least here in north Florida that is the case. The tax overhaul has little to no affect upon people looking for a new construction home. People are standing in line to pay more than the last person. We've seen no slow down with new homes. There is a shortage of existing homes in many neighborhoods.

[KY_EnviroGuy]

7. This may explain your contradictory data point....

Form the cited article in the OP:

New home sales in the South, which accounts for the bulk of transactions, jumped 4.9% in May to the highest level since July 2007. Sales in the Midwest rose 6.3%. But sales plunged 35.9% in the West and tumbled 17.6% in the Northeast.

I found this interesting, too:

The housing market has remained sluggish even as mortgage rate have dropped, with builders continuing to complain about land and labor shortages.

That all may suggest that at least in large parts of the country, a combination of higher land and labor costs and possibly along with tariff-driven increases in building materials costs is a market killer. That would in turn drive up rental and aftermarket home prices.

[groundloop]

9. Yep, I realize this is new home sales

And part of the decision to buy ANY house (new or not) has always been the tax advantage of being able to deduct mortgage interest.

And you mention there's no slow down in new home sales, yet the title of the linked article says "U.S. new home sales drop for second straight month". This is on a nationwide scale, certain areas with high influx will certainly differ.

[Bengus81]

5. And interest on 30yr and 15yr loans are at historic lows...........

Again,this Trump "economy" is smoke and mirrors Wall St bullshit.

[melm00se]

6. I am really shocked that this states that sales "unexpectedly"

dropped.

New home sales have had a trend line of up and to the right since May 2014. That will eventually stop...nothing grows continually.

[Wellstone ruled]

8. Follow the Job creation

or the next new Retirement Boom Town. Here in the West it is a local thing. Thousands were displaced by Wild Fires in the past two years. Many opted to take the Insurance Money and run,thus we are seeing mini bubbles in certain Cities.

If you want 4 and 5 bedroom homes,well there are tons on the market,most people are down sizing to 2 to 3 bedroom smaller footprint houses. It is all about disposable Income.