Misleading Headlines | John Burns Real Estate Consulting

Misleading Headlines

New home sales reportedly spiked in October. Huh?

Builder stocks spiked right after the Census Bureau release Wednesday morning, and we are sure that many believe we are in a strong housing market again because of the headlines. On Fox Business, I explained what is actually going on. We discussed:

  • The data quirk behind the simultaneous release of plunging September sales followed by a return to a more normal trend in October
  • 444,000 sales being just more than half of normal new home sales
  • The missing entry-level buyer
  • My anticipation for low homeownership due to the tremendous disincentives to lend to the credit-challenged borrower

 

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If you have any questions, please contact John Burns at (949) 870-1200 or by email.

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