One thing becomes apparent when looking at the price range breakdown in the just released latest New Home Sales breakdown - the quality, or rather price, of homes sold continues to deteriorate. As can be seen on the chart below, November is the 4th month in a row in which there was (Z), or less than 500 houses sold in the $750,000 category. And while there has been a consistent deterioration in virtually all other price buckets, one is stable: that of the under $150,000. Luckily, the banks keep on leaking out those foreclosed upon properties with the regularity of Old Faithful. Now if only they could releases the 6 million in shadow inventory homes so the housing market could finally clear, thing may actually be optimistic. Alas, as long as they are held on the books, and buyers, who it just happens are not idiots, refuse to pay top dollar knowing well tomorrow a far better deal may hit the market, there is no hope for either the housing market rebounding, or by implication job creation finally picking up. Thank you Centrally Planning Ben. May we have another?
