New Home Sales: They Sucked
Courtesy of Karl Denninger at The Market Ticker
You know, I have to love the mainstream media.
July 26 (Bloomberg) — Sales of U.S. new homes rose in June more than forecast following an unprecedented collapse the prior month, a signal the worst of the slump triggered by the end of a government tax credit is over.
Yeah, ok. Whatever.
Note that June is the start of the "summer selling season" for houses, in that kids are out of school and, when possible, families prefer not to disrupt educations. They therefore try to move in the summer.
Why is this important?
Because this is the weakest new home sales number ever recorded (records began in 1963) for June.
Remember as well that new home sales reflect contracts signed, not closings. As such some of these "sales" will undoubtedly not close, and thus not really be sales. That, however, won’t be reported (at all.)
Best-a-luck with believing the "bottom" callers…. again.