Stocks of homebuilders swoon amid worst inflation in construction costs, shortages, and spiking mortgage rates that take buyers out of the market.
Sales of new single-family houses in April plunged by 16.6% from March and by 26.9% from a year ago, to a seasonally adjusted annual rate of 591,000 houses, the lowest since lockdown in April 2020, according to the Census Bureau today. Sales of new houses are registered when contracts are signed, not when deals close and can serve as an early indicator of the overall housing market.
By region, sales plunged the most in the South:
- South: -19.8% for the month, -36.6% year-over-year.
- Midwest: -15.1% for the month, -25.5% year-over-year
- West: -13.8% for the month, -12.4% year-over-year.
- Northeast: -5.9% for the month, +17.1% year-over-year
Unsold inventory of new houses spiked in a historic month-to-month leap of 34,000 houses, and by 127,000 houses from April last year, to 444,000 unsold houses, seasonally adjusted, the highest since May 2008.
By region, unsold inventory spiked the most in the South, and dipped in the Northeast. Percent increase year-over-year:
- South: +53%
- Midwest: +39%
- West: +8.4%
- Northeast: -4%
The supply of unsold new houses spiked in a historic month-to-month leap from an already high 6.9 months supply in March to a dizzying 9.0 months supply in April, having nearly doubled from a year ago:
The bottom fell out under $400,000. At the top end, things weren’t so bad: sales were flat year-over-year in the $400,000 to $750,000 range, though they fell on a month-to-month basis. But you cannot maintain a housing market by just selling to the wealthy.
In the price categories below $400,000, the bottom fell out. The drop in sales year-over-year:
- $300k to $400k: -42%
- $200k to $300k: -71%
- $200: dead.
Collapse in sales below $400K changed the mix, skewing the median price…..
Are you fed up? Are you worried that America in rapidly sliding into a neo-Marxist state by the radical left in control of Washington with historically narrow majorities in the U.S. House and Senate and an Executive controlled by unnamed far leftists in place of a clinically incompetent President Biden? They are desperate to keep power and complete their radical progressive agenda that will change America and our liberty forever.
Americans just witnessed the passage of the Inflation Reduction Act of 2022 without one Republican vote in the U.S. Senate and House (just as Obamacare was passed in 2010). The IRS will be hiring 87,000 new agents, many armed, to terrorize American taxpayers.
Americans witnessed the FBI raid at the Trump Mar-A-Lago home and property of President Trump, truly a first in all of American history. We know what that is about.
It is undeniable that the Democrat Party and the administrative state (the executive branches of the DOJ, FBI, IRS, et al) are clear and present dangers to our Republic and our liberty as they increasingly veer further away from the rule of law and the Constitution. What is the solution? At this critical juncture, there is only one action we can all take.
The only viable and timely solution at this critical point is to vote – yes, vote correctly and smartly to retake the U.S. House and Senate on November 8th and to prepare the way to retake the White House in two years. Vote and help everyone you know to vote. Please click the TAKE ACTION link below – we must vote correctly and in great numbers to be sure our votes are counted to diminish the potential for the left to rig and steal the midterms and the 2024 elections as they are clearly intending to do after their success in 2020.