Menu Close

Low Inventory Recovery! December U.S. New Home Sales Decline More Than Forecast (-9.3% MoM, But +14.4 % YoY)

This is a syndicated repost published with the permission of Confounded Interest – Online Course Notes for Financial Markets. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

New home sale figures are out for December and they showed a Month-over-month (MoM) decline of -9.3%. However, on a YoY basis, new home sales rose +14.4%.


The biggest loser? The midwest, likely attributable to the Cleveland Browns winless season and the Cleveland Cavaliers trading their star point guard (Kyrie Irvin) to the Boston Celtics for a ball hog (Isiah Thomas) and a second-string power forward (Jae Crowder), declined -10% MoM.  Or the blasting cold of midwest winters.

If we compare new home sales to existing home sales, notice that existing home sales (blue line) recovered faster than new home sales (white line)  since the house price bubble burst and ensuing financial crisis and recession (purple line).  Despite the growth in the US population, new home sales are at 1993 levels.


Like existing home sales, new home sales are plagued by a lack of new construction and inventory.


The lack of growth in new home sales is directly linked to the decline in sub-602 FICO borrowers applying for a mortgage.



Join the conversation and have a little fun at If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Follow by Email