Sales of new homes plummeted to 511,000 in July, a 6 1/2 year low. New home sales plummet to 6½-year low in July (nypost.com) June was revised down from 590,000 to 585,000. This couldn't have anything to do with the recession that the federal government is denying exists, could it?
Builder outlook has declined for 8 consecutive months: New Home Sales Crash As Recession Grips Housing Market (breitbart.com) Home builder confidence has fallen for eight months. In July, the NAHB/Wells Fargo housing market index unexpectedly dropped six points to a reading of 49, below the breakeven point indicating a deteriorating market. Housing starts have fallen to their lowest level since the initial lockdown months of the pandemic.
An alternate phrasing would be that we can tell inflation is waning because those who need something to complain about have shifted to complaining about demand.
Disagree ... inflation is seen largely in the building supplies, like wood. If you increase house construction, you'd almost certainly keep the building supply prices high.
While the housing news is definitely bad news in the short term it will also tamp down the rate of inflation. It could also mean that Fed will increase interest rates less than originally anticipated following its meeting in September.
Likely a recession, but some pockets of good and some pockets of bad by industry. I would prefer we all take our lumps now and not have a protracted recession with poor decisions by Trump appointee Jerome “Printing Machine” Powell.
Poster would be first in line to post about the "failure of the Biden Admin.to curb inflation" if the housing starts had increased. Would it be duplicitous or simply dupe?
Well, then it would have been Trump’s economy and Biden riding his magic carpet. Trump’s economy Reminds me of this thread: Creepiest Music Video Ever?
All this will do is push up the price of rent. That will hurt those who can’t afford to handle the increases. Need to clear a path for building. We’ve under built for a decade. We are now getting further behind. Raising interest rates doesn’t reduce the demand for a place to live.
