It seems everything Biden touches turns to stone. This was called “The Medusa Touch”, but I changed it to “The Biden Touch”. And that includes housing. Or we can just sing along with the late Jimmy Buffet and “Another draining blow to Bidenville.”
And mortgage rates near 7% don't help (as the Fed continues its fight against Bidenflation).
U.S. new home sales were expected to fall 0.2% month-on-month in May…but they didn't…
New home sales fell 11.3% month-on-month (after the 4.7% drop in April was revised up to a 2.0% month-on-month increase). This is the biggest MoM drop since September 2022…
This is the biggest year-on-year decline since February 2023, bringing the SAAR to the same level as 2016…
Median new home price fell 0.9% year-over-year to $417,400, lowest since April 2023 – (with a median sale price of $520,000) with a large downward revision for April from $433,000 to $417,000!…
For the first time since June 2021, median existing home prices are above median new home prices…
As BofA warned yesterday:
“The US housing market is stuck, and we're not convinced it's going to get unstuck anytime soon. After a spike in housing activity during the pandemic, it has since retreated and stabilized. We see the forces that have reduced affordability, created a lock-in effect for homeowners, and limited housing activity will continue over our forecast horizon.”
At the same time, the The supply of available homes rose to 481,000, still the highest since 2008.
New home sales are reducing the reality of mortgage rates that continue to remain above 7%…
Looks like homebuilders eventually gave up on filling that void in anticipation of an imminent Fed rate cut to save the world.
Will Biden double down on his failed policies tonight at the CNN presidential debate? Maybe Joe can sing “Bidenomics double shot”.
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