New Home Sales Shock: Americans Bought Far More Homes Than Expected in April

[mystery-ak]

New Home Sales Shock: Americans Bought Far More Homes Than Expected in April

John Carney 26 May 2020

Americans purchased far more new homes in April than expected, a sign that the residential real estate impact of the coronavirus could be less extreme than feared by many forecasters.

Sales of newly-built single-family houses occurred at a seasonally-adjusted annual rate of 623,000, the Commerce Department reported Tuesday.
Economists had expected sales to fall to a seasonally adjusted rate of 485,000, according to Econoday.

The March number was revised down to 619,000 from 627,000. February and January were also revised lower.

The supply of homes for sale, meanwhile, held steady at 6.3 months, which is slightly above normal.

more
https://www.breitbart.com/economy/2020/05/26/new-home-sales-april/

[mountaineer]

I know someone in Pennsylvania who was buying a house and was at the "home inspection" phase of the process when Gov. Wolf shut everything down. I don't know whether the whole deal has fallen through as a result, but they're  no closer to moving than they were two months ago. Apparently, everyone involved in real estate, mortgage lending, etc., is non-essential there.

[truth_seeker]

In Calif. real estate was classified as "essential" and moved forward with plenty of requirements, disclosures, etc.

My local forecast expert in So-Cal, indicates unexpected demand. His analysis; unlike 2008 when everybody knew the market was screwed due to loans made to people that couldn't afford to pay, today the underlying fundamentals are solid. sellers have lots of equity, buyers can qualify the old fashioned way.

Another source, in Nor-Cal indicates multiple offers, at/above full price.

[Cyber Liberty]

In Calif. real estate was classified as "essential" and moved forward with plenty of requirements, disclosures, etc.

My local forecast expert in So-Cal, indicates unexpected demand. His analysis; unlike 2008 when everybody knew the market was screwed due to loans made to people that couldn't afford to pay, today the underlying fundamentals are solid. sellers have lots of equity, buyers can qualify the old fashioned way.

Another source, in Nor-Cal indicates multiple offers, at/above full price.

Good news, and I know this is in your wheelhouse.   

[Applewood]

I know someone in Pennsylvania who was buying a house and was at the "home inspection" phase of the process when Gov. Wolf shut everything down. I don't know whether the whole deal has fallen through as a result, but they're  no closer to moving than they were two months ago. Apparently, everyone involved in real estate, mortgage lending, etc., is non-essential there.

You are correct.  Real estate is non-essential here and it has caused some headaches for some relatives of mine.  They were almost done with all the preliminary stuff and ready to close when the lockdown was ordered.  Last I heard, they were hoping to close in June. 

[truth_seeker]

Good news, and I know this is in your wheelhouse.   

FWIW my SoCal source does several counties nearby.

My Nor-Cal source is Scott Adams, who lives in Pleasonton. He asked the leading broker in his immediate area, and got the "multiple-offer-above-asking answer.

But you know realtors blow smoke, sometimes

Along with stocks today, real estate is critical.

Both seem to have priced a strong recovery, into their respective outlooks.

Any Potus has the "Bully pulpit.

Anybody that owns property ought to hope for a strong RE market. IOW that their fellow Americans remain happy, healthy and prosperous.

Same for stocks, employment, small businesses.