New Home Sales disappointed today, coming in at 313,000 (annualized), missing the consensus of 325,000.
Adding to the disappointment was last month’s downwardly revised figure of 318,000 from the previously reported 321K.
Today’s numbers aren’t as bad as the headline suggests. While 318K is -1.57% below last month’s revised 318K, it’s still up an impressive 11.39% above last year’s 281K.
No doubt, the housing recovery skeptics will point to this number until at least next month. But the long-term takeaway, in my opinion, is that housing, at the very least, seems to have stabilized, i.e., not getting worse from last year. And in the sequential order of things, stabilization comes first (check) and then improvement (check). And I think there’s a stronger argument that we’re already in the improvement phase.
Post your comments and tell us what you think about the direction of the housing recovery.
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