By Dr Denver H. Bubble
Experts, ourselves not included, were expecting new home sales to rebound in October after falling 5.5% month over month in September, but instead, new home sales collapsed, tumbling 8.9% month over month in October. New home sales have now missed expectations for seven consecutive months. The drop in purchases was led by a 22.1% fall in the Midwest, and an 18.5% decrease in the Northeast. The South had a 7.7% decline while our home region the West held up the best with only a decrease of 3.2%.
The US median price tumbled to $309.7K from $321.3K, lowest since Feb 2017. Supply of houses is also up to 7.4 months, continuing a worrying trend of inventory build up.
Supplies are up
We should have the metro Denver metrics next week and it will be interesting to see if we are outperforming our region.
Images source: zerohedge.com