Latest Existing/New Home Sales Show Market Decline Will Accelerate
Mortgage purchase applications have declined in 7 out of the first nine weeks of 2015. Based on seasonality, they should be increasing every week…Just so you don’t think my view on the housing market is a lone voice out there:
The complacency in evidence today is not dissimilar to that seen during the sub-prime era, when both Mr. Bernanke and Ms. Yellen admitted they did not see the problems coming. The real estate market is now accustomed to an ever increasing level of happy drugs. Now that the Fed has clearly come to the end of providing additional support, withdrawal is going to be quite painful (LINK)
Case-Shiller Index publisher:The housing recovery is faltering. While prices and sales of existing homes are close to normal, construction and new home sales remain weak. – David Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices
I published articles which blow away the Orwellian fog from the National Association or Realtor and Census Bureau headline reports for January’s existing and new home sale reports. You can read them here: Existing Home Sales; New Home Sales
I have yet to hear one housing market bull explain how the home sales will do anything but decline going forward given that the average American’s ability to purchase and fund and home continues to deteriorate – quickly – based on real median income reports, negative retail sales, negative consumer spending and rapidly growing consumer debt (auto, student loan, revolving).
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