New-Home Sales, Prices Decrease: Consumer Confidence Declines

[kurtyboy]

Source: Wall Street Journal

New-home sales resumed falling in May and the big jump in demand the month before was revised lower, while the median price of a home compared to a year earlier dropped.

Meanwhile, U.S. consumer confidence fell in June to its weakest reading since August, with both the present situation and expectations components declining, according to a report released Tuesday.

Sales of single-family homes decreased by 1.6% to a seasonally adjusted annual rate of 915,000, the Commerce Department said Tuesday. April new-home sales rose 13% to an annual rate to 930,000; originally, the government said April sales rose 16% to 981,000.

<snip>
Builders are losing confidence. They broke ground in May at a lower rate than the month before; government data showed May housing starts fell 2.1%, the first drop in four months. The lifeless housing market has reduced economic growth for six consecutive quarters, and a bulging supply of unsold homes suggest further drag. Another thorn in the side of the industry is the subprime loan market mess. Lenders have tightened credit -- and might do so further amid evidence that the outlook for securities backed by the riskiest subprime loans made last year has deteriorated.



Read more: http://online.wsj.com/article/SB118286428657448435.html?mod=home_whats_news_us

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Included in the subscription-only story... Year-over-year drop of 16% in new home sales from May of 2006.

[Maggie_May]

1. My story

moved because of job reasons. I lived in Michigan and we all know how the job market is going there. Well anyway have a beautiful home in Michigan can't move it to save our lives. We put on the market a year ago and now we have it so low we almost have to come to the table with 20,000 just to get out from under it. The problem is there are tons of foreclosed homes which brings down our home price. I know its not just me I see it everywhere. The housing market is in huge trouble and I don't see a light at the end of the tunnel. People are making less money everything else has gone up food gas electric you name it and its getting harder and harder to make ends meet.

[roamer65]

2. Yup, Michigan is a very tough market right now.

I have been told by family of people just walking into banks and dropping the house keys on their desks. If people think this is a regional issue, it is not. The contagion will spread. I hope you get lucky and sell soon.

[DeeDeeNY]

3. Luxury home sales doing just fine

http://www.northbaybusinessjournal.com/apps/pbcs.dll/article?AID=/20070528/BUSINESSJOURNAL/70523030&SearchID=73283136620283

[redqueen]

6. It's the new gilded age...

will it take another depression to stop it?

All signs seem to point to "yes".

[papau]

7. One month is not a trend - but Boston inside the beltway prices rose last month n/t

n/t

[Javaman]

4. But but but the economy is booming according to the failure*... nt

[Doctor_J]

5. well, if escalating deaths = surge working, maybe plummeting housing market = boom

I wish I could implement conlogic. Then maybe I could be content about the state of the country