US new home sales declined -19.3% YoY in January as mortgage rates have risen awfully fast.
On a MoM basis, US housing starts declined -4.53% from December, but heck … its winter. The median price for new homes rose 7.03% from December.
Median price of new home sales YoY is now 13.4% thanks to limited available inventory for sale.
The good news! US new home sales rose 1% in July to 708k units SAAR.
The bad news? The median price of new home sales is $390k.
More bad news for the midwest and northeast. New home sales dropped. Most of the growth in new home sales occurred in The West.
Hot, hot, hot! But not in the northeast and midwest. There it is not, not, not.
The NAHB Homebuilder confidence index dropped to a 13 month low as building materials rise by 19.4% YoY.
Of course, then we have the University of Michigan conditions for buying a home crashing as well.
Rising home prices and rising construction material costs? Yikes.
Of course, the NAHB had this to say:
“Our expectation is that production bottlenecks should ease over the coming months and the market should return to more normal conditions,” NAHB Chief Economist Robert Dietz said in a statement.
Perhaps, but The Fed needs to slow down its money printing as well.
The most powerful economists in the world?