U.S. new home sales fall to seven-month low

[DonViejo]

Source: Reuters



AUGUST 23, 2017 / 10:09 AM / AN HOUR AGO

Lucia Mutikani


WASHINGTON (Reuters) - New U.S. single-family home sales unexpectedly fell in July, dropping to their lowest in seven months, which could raise concerns of a slowdown in the housing market recovery.

The Commerce Department said on Wednesday new home sales tumbled 9.4 percent to a seasonally adjusted annual rate of 571,000 units last month, the lowest level since December 2016. The percentage drop was the largest since August 2016 and confounded economists' expectations for a 0.3 percent gain.

June's sales pace was revised up to 630,000 units from the previously reported 610,000 units. Home sales in May also were not as weak as previously reported, taking some of the sting from July's report.

New home sales, which account for 9.4 percent of overall housing sales, are volatile month-to-month and are drawn from building permits. Still, sales declined 8.9 percent on a year-on-year basis.

Read more: http://www.reuters.com/article/us-usa-economy-housing-idUSKCN1B31OD

[hibbing]

1. I think many are being priced out

Houses here are sold before a For Sale sign is put up. My assessed value rose 25% in one year.


Peace

[Wellstone ruled]

3. Appears to be the real story

in certain areas. Another is,the Speculator's are unloading there Repo's and Foreclosures. Ton's of these are fixer uppers or what are know distressed Properties.

With Trump in the White House,people are hunkering down and waiting it out.

[sandensea]

2. The Trump slump.

New home sales, it's worth remembering, doubled under Obama.

[bucolic_frolic]

4. Realizing YOYO You're on Your Own

now that Trump is in office, people are fearful for their financial future.

The safety net supports confidence, a couple thousand bucks from tax
repeals and shrunken health care do not.

[JenniferJuniper]

5. I think that's a large part coupled

with the fact that most new homes are too damn big, at least in my area. Who wants to think about heating and cooling such large homes, especially with so much uncertainty.

As for existing homes, there is almost no inventory in my area with smaller ranches and capes being snapped up overnight. And people living in homes with 3 percent mortgages aren't all that eager to sell.

[bucolic_frolic]

8. Maintenance is a cost never factored in

Those McMansions, of average size, say 2500 to 3500 sq foot. Replace the roof? $10-14,000.
And labor may not always be so readily available.

I don't see the wisdom of owning something that's bleeding you dry. Insurance, vegetation management.
If you can't carry it, you're better off not owning it in the first place.

It's called real estate for a reason. The 'real' part is derived from Royale - Royal. The king owns it, we're only
renters. If you don't pay the taxes, you'll find that out fast.

[Sunlei]

6. many savvy investors snapped up the bargains & own large groups of rental homes, high rent.

check out neighborhood associations across America usually a couple of those people who sit on those boards are in real estate. They can keep a close eye on homeowners who miss paying taxes, rack up neighborhood association fines, drop mortgages required insurance policy (many mortgages require current insurance) and can't afford to pay.

Real estate agents will snap up those bargain homes.

[alcibiades_mystery]

7. Recession is coming

[workinclasszero]

9. Let's see...new home sales down...auto industry slowing down...

Dump has just about killed Obama's recovery.

Here comes the next republican Bush/Trump depression.

[W T F]

10. Lowest in 7 months? How long has Trump been president now????????