New Home Sales Blast Past Expectations

[Purveyor]

Source: CNN Money

August 26, 2009: 10:50 AM ET

NEW YORK (CNNMoney.com) -- Sales of newly constructed homes leaped unexpectedly in July to hit their highest level since last September.

New homes sold at an annualized rate of 433,000 during the month, according to a joint report issued by the Census Bureau and Department of Housing and Urban Development.

That far exceeded analysts' forecasts and was up 9.6% from the revised 395,000 rate recorded in June. A consensus of industry experts surveyed by Briefing.com had predicted July sales of 390,000.

The news followed other positive housing market reports earlier this month, including a spike in existing home sales, home prices and affordability.

"There are many economic conditions that led to the surge," said Bob Walters, chief economist for Quicken Loans. "But certainly low mortgage rates, huge price reductions on the high inventory of new builds, and the first-time homebuyer tax credit have been instrumental in getting consumers to take the plunge into the real estate pool of opportunity."

Read more: http://money.cnn.com/2009/08/26/real_estate/July_new_home_sales/index.htm?section=money_mostpopular

[ginnyinWI]

1. My daughter and son-in-law bought one this summer,

and it was specifically because of the 8K tax break. They were going to wait another year, but this pushed them into doing it this year--their first house.

[bluestateguy]

2. "Doom and Gloom Patrol report to aisle 18!"

This will be a tougher order for them because they always dismiss positive housing data by saying that it's just foreclosed homes being bought up.

[Gormy Cuss]

3. This is the report on new housing sales, not existing.

The existing housing sales are where the foreclosure unloadings are affecting both volume and price.

And the spin is rosy but the fact is the number of sales is substantially lower than a year ago, and a companion report, new housing starts, shows only a modest increase for single family housing and a decline in housing starts overall. That suggests that there isn't enough confidence in the ability to sell more new construction inventory.

WASHINGTON – The U.S. Commerce Department’s Bureau of the Census today released data on new residential construction in July. Starts for single-family homes increased 1.7 percent, while overall permits to build privately-owned housing units declined 1.8 percent and housing starts decreased 1.0 percent.

Despite the overall decrease, total permits have risen 12.4 percent from their low in April, after plummeting a total of 78.0 percent between September 2005 and April 2009. Additionally, total starts have increased 21.3 percent, after falling 78.9 percent from their peak in January 2006 to their low in April 2009.

“Monthly data for housing activity are volatile but today’s nominal decline stands as a reminder that the economy is still fragile,” U.S. Under Secretary of Commerce for Economic Affairs Rebecca Blank said. “Looking at the big picture, we are confident that we’ve created the stability necessary to turn things around....

http://www.esa.doc.gov/

Is that enough Doom and Gloom for you?

[TheWatcher]

6. But they have a weapon for those facts you cannot penetrate.

It's called Superior Indifference.

All one has to do is just say "It doesn't exist", and then it doesn't matter what facts or figures you have.

The desperation to believe and support the lie is going to win over facing reality every time.

[Kahuna]

4. You'd think * was still in charge (kind of), the way they pooh pooh any

positive economics news. Very sad.

[TheWatcher]

5. Not really.

You can believe the Propaganda if you wish.

When the "seasonally adjusted" nonsense is removed from the fantasy numbers, and you look at the raw, untainted data, there was a decline of 9.3%

Also, the current number, non adjusted, is the third lowest for July since 1963.

And Commercial Real Estate, the next shoe to drop, continues to unravel ever creepingly as The Cheerleading Media drones on to you through their megaphones about "Green Shoots."

I will give them and the government credit, because in a sick way, it is definitely due for the impressive job they have done.

They have completely, for the most part, Propagandized The Public into submission.

Most are actually starting to BELIEVE that down is up.

And sorry to break it to you, but those who are pointing out the fallacies in the Propaganda are not some cult or wild-eyed kooks with an agenda, obsession, or delusional fanatics who "want the economy to fail", no matter how desperately you and many others would like to paint them as.

They merely see The Truth Behind The Lie. It's that simple. They do not accept at face value, feel good, belt out a party line cheer, wave the pom-poms, and then continue zombie-walking forward, waiting for the next nugget that will build upon the false paradigm.

Even the rigged, manipulated markets are acting completely flat to today's news.

The Joke Is Still On Us.

And most of us are determined not to see it.

[samsingh]

8. interesting post - elements of several comic books

'The Watcher' - Fantatic Four

' the Joke is Still on Us ' - Watchmen.


cool

[TheWatcher]

9. Except this isn't a Comic Book, my friend. It's your life. Your Country. And it's future.

It is understandable that you want to feel good and believe that things are getting better, but the fact is they aren't.

Instead of actually taking actions to improve, support, and stimulate the REAL ECONOMY, the one that affects you, me, and the other 95% of the people that make up We The People, The Powers That Be have been blowing smoke up our backsides for nearly six months, with Propaganda, Happy talk, and Numbers that receive Pravda Like Spin.

The only Recovery that is happening is the complex Illusion they have constructed and sold you as Reality. There is no reality there, I am afraid.

People get very angry, hostile, and unfriendly when you point these things out. And it's understandable I guess. No one likes to have their parade pissed on.

What they should do is stop taking the Propaganda at face value and actually digging through it to find the Truth that is ALWAYS buried there.

They know most of us won't.

Sound Bytes and One Paragraph Proclamations are our Salvation, and our New Religion.

And that is why it's so easy for them to sell us ANYTHING they want us to believe.

And we will buy it with both fists.

[samsingh]

10. i think it's important to point out the facts the way you are

i feel the same way that the recovery is not as real as being portrayed (but i do believe that we're in better shape now than under bush-the-idiot). i'm prudent in my investments.

[bvar22]

11. AND the Chocolate Ration has been increased by 10% !!!!

Double Plus Good ! :party:

[QC]

13. The criticize the economy is to criticize The Leader.

Do you really want Sarah palin to take over? :scared:

[TheWatcher]

14. This of course is a very flawed statement, if it's not sarcasm.

NO ONE wants the Republicans back in Power, and I am really becoming tired of people floating this meme along with "You want the economy to fail", etc.

NOTHING HAS CHANGED FUNDAMENTALLY IN THE REAL ECONOMY. We are being fed Propaganda and Spin and told everything is fine.

POINTING OUT THE FALLACIES IN MEDIA AND GOVERNMENT NUMBERS DOES NOT EQUAL OBAMA BASHING.

When are we going to get past this "Football Team" Mentality?

This is not an NFL Rivalry.

[QC]

15. It's sarcasm, but the fact that you had to wonder

shows just how weird things have gotten around here.

[TheWatcher]

17. I know. The Kool-Aid flows so freely and is imbibed so willingly and eagerly.

It is becoming difficult to tell the difference.

My apologies. :hug:

[Donnachaidh]

16. +1

:thumbsup:

[samsingh]

7. thank you President Obama for repairing some of the damage from the bush miserable period

[Adam Kirur]

12. And those new front yards will have GRASS.....

...not Astroturf!

[JeanGrey]

18. They want that government tax credit - it is 8 grand, isn't

it?