An interesting note. The markets are up after the announcement of a 3.3% month over month increase in new home sales while missing the detail that there is really a 42% decline in year over year new home sales when comparing against April 2007 numbers.
From the associated press:
Stocks advance after surprise gain in home sales
NEW YORK -
Wall Street advanced Tuesday after the government reported the first gain in new home sales in six months, news that raised hopes for a recovery in the housing sector and that offset disappointing consumer confidence data.
The Commerce Department said sales of new homes rose 3.3 percent in April to a seasonally adjusted rate of 526,000 units. In March, sales had fallen 11 percent to their weakest pace since 1991.
From The Big Picture:
Sales of new one-family houses in April 2008 were at a seasonally adjusted annual rate of 526,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
This is 3.3% (±11.7%)* above the revised March rate of 509,000, but is 42.0% (±8.1%) below the April 2007 estimate of 907,000.
Interesting charts:
courtesy of Barron's Econoday
Monthly new home sales (NSA - Not Seasonally Adjusted).
"Notice the Red columns for 2008. This is the lowest sales for April since the recession of '91. As the graph indicates, the spring selling season has never really started. "courtesy of Calculated Risk
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