The number of NEW single-family houses for sale has surged to 480,000 in April, the highest since the 2008 Financial Crisis. Excluding the 2008-2009 housing crisis this is by far the largest supply of new homes in US history.
Here’s the FRED chart in case anyone questions the veracity of the chart:
fred.stlouisfed.org/series/HNFSEPUSSA
New home prices dropping is exactly what we’ll eventually see in used home prices once used home inventory begins climbing. Unemployment (due to higher rates finally slowing the economy, which today’s Core PCE and Chicago PMI help confirm) will begin spiking soon, and that will kill consumption, and asset liquidation will rule the day.
US pending home sales suffer largest drop in three years
(Reuters) – Contract signings for U.S. home purchases fell by the most in three years in April and the overall level of activity was the lowest since the onset of the COVID-19 pandemic in the spring of 2020, as high interest rates keep a lid on the housing market, the National Association of Realtors said on Thursday.
The NAR said its pending home sales index fell 7.7% in April to 72.3 from an upwardly revised 78.3 reading in March. The drop was the largest since February 2021 and the index level was the lowest since the record-low reading of 71.8 in April of 2020.
The index is meant to be predictive of completed home sales transactions one to two months later.
“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said Lawrence Yun, the NAR’s chief economist. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”
finance.yahoo.com/news/us-pending-home-sales-suffer-143319359.html
h/t Hollywood_Econ