Sales of U.S. New Homes Unexpectedly Fell in December

Sales of new homes in the U.S. unexpectedly dropped in December, signaling the extension of a government tax credit has yet to shore up demand.

More of this unexpectedly garbage. Does this surprise anyone?

“While we’re past the bottom in housing, especially in sales and construction, we still have a long road to go,” said Adam York, an economist at Wells Fargo Securities LLC in Charlotte, North Carolina, who forecast a drop to 349,000.

Past the bottom in housing?

Depressionary bottoms are formations rather than single events such as proclamations that we're past the bottom. These formations, characterized by the saying bouncing along the bottom, represent the cycle between hope and fear. Obama campaigned on the slogan of hope. Roosevelt's famous quote "Only Thing We Have to Fear Is Fear Itself" suggests how history will repeat.

New homes sales are losing momentum.

New Home Sales And Change YOY, SA:

While average home sales price may have up ticked, it did so as supply increased. This suggests further price declines in the future.

Median Home Price to Months Supply Ratio (at current sales rate) (MHPMSR) - Median Home Price per Supply of Homes (at current sales rate):

There is a fine between hope and fear. It is line that will be crossed my times during this economic depression.

Source: bloomberg.com