24 July 2014 (10:46 UTC-07 Tango)/26 Ramadan 1435/02 Mordad 1393/28 Xin-Wei 4712
If you’ve been following my U.S. Job Losses & Store Closings reports you’d have noticed that since 2013 I’ve been warning of a coming housing market crash, based on the fact that the Too Big to Jail bank/mortgage industry has been laying off thousands of their employees due to “declining mortgage applications”.
That can only mean declining home sales, and today’s newly released revised data proves it! New homes sales are down, as is the median price for a new home, contrary to what all those main streamer news media ‘experts’ have been reporting.
The U.S. Department of Commerce has revised economic data for the first six months of 2014. Month to month new home sales in January were revised to a plus 3.4%, February was a minus 5.5%, March a minus 5.1%, April plus 3.7%, May plus 8.3%.
The month of June is still an estimate that will be revised in August, but at this point shows a minus 8.1% (when you compare to June 2013 it’s a minus 11.5%!). The way things are going don’t be surprised if the June data is revised downward.
The net result is declining new home sales for the first half of 2014. The biggest drop in sales was in the north eastern U.S.; a 20% crash just for June! To make things worse, the supply of new homes for sale went up from the first six months of last year!
The biggest news is the drastic revision for May. Originally it was ‘estimated’ that 504-thousand new homes were sold in May. Turns out the actual number is 442-thousand.
June sales of existing homes went up only 2.6% (remember this is an ‘estimate’ to be revised with more hard-n-fast data, for August release), however prices for existing homes barely went up because the supply of available existing homes for sale hit a two high. Basically there’s more supply than demand.
While the Too Big to Jail banks blame their mortgage industry job layoffs on crashing home loan demand, the Commerce Department blames crashing home sales on the Too Big to Jail banks making it harder for people to get home loans! This is what’s called a vicious downward spiral, aka Death Spiral.
By the way, anybody who thinks the housing market has returned to pre-‘recession’ levels, think again. In 2005 new home sales peaked at a monthly rate of nearly 1.4-million! By 2010 new home sales were around 300-thousand per month. Compare that to this June’s 406-thousand and then ask your exalted leaders “What economic recovery?”
“Our ideals and principles, as well as our national security……..That’s what makes America different. That’s what makes us exceptional.”-Barack Obama, 10 September 2013