With existing home sales ‘re-slumping’ back to the lowest SAAR levels since 2010, hope for the US housing market remains in the new homes market (where consensus believes that sales will jump 0.6% MoM after last month’s 4.7% plunge).

Hope remains alive apparently as new home sales rose 4.1% MoM. The noisy YoY data is back at +6.3%…

Source: Bloomberg

The total New Home Sales SAAR is 738k – the highest since May 2023…

Source: Bloomberg

 The last three months have seen significant downward revisions to the new home sales SAAR…

Source: Bloomberg

The median new home price rose modestly MoM, but remains in a relatively tight range still…

Source: Bloomberg

What will happen to prices now that The Fed has started cutting rates? Spoiler Alert: This rebound in new home sales is over!!!

Source: Bloomberg

Finally, NAR cheerleader Lawrence Yun blames politics for the lack of serious rebound, despite lower mortgage rates:

“Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election.”

We are sure Kamala has a ‘solution’ for those higher prices and lower affordability.