Inquiring minds are looking at CNNMoney.com’s report on New Homes Sales for October…and baby, its cold out there:
New home sales dropped to an annual pace of just 283,000, according to the Commerce Department. That was down 8.1% from a slow September and 28.5% from 12 months ago when the annualized sales rate was at 430,000.
As bad as that news is, the data actually came back even much worse than expected:
Housing experts from Briefing.com had forecast a sales pace of 314,000.
“The new home market delivered another turkey of a performance last month,” said Mike Larson, a housing market analyst with Weiss Research. “Sales fell sharply across most of the country.”
Sales are off nearly 80% from the housing boom peak pace of 1.4 million, set in July 2005. Sales have remained near historic lows this year despite very attractive mortgage interest rates that slash the monthly costs of homeownership.
And just to pour salt in the wound…yes, the previous month’s data was revised downward:
The Commerce Department also revised August sales figures downward to 275,000, which represents the record low point for new homes sales since it started tracking figures in 1963.
Think of the population increase since that time to get a true handle on just how bad these numbers are…
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