New Home Sales Tumble
A: This surprising new home sales drop should adversely affect the hottest housing markets outside NYC, more than it hits us here. Markets such as Phoenix, Miami, & Los Angeles are particularly vulnerable.
New home sales in November fell to 1.25M units from a record high of 1.4M in October. Forecasters were predicting new homes sales to slump to 1.3M units, causing the surprise.
I wouldnt worry too much about this affecting the NYC housing markets as new constructions in this city could use a healthy correction from the $200-500/Sq. Ft. premium they are asking over exisitng homes.
Most sales in New York City are existing apartments. While this number is a negative surprise, and new home sales figures are more of a leading indicator than sales of exisitng homes, I would expect this to adversely affect regions of the country that have been red-hot first. Cities such as Phoenix, Miami, & Los Angeles whose housing markets have experienced unsustainable growth over the past few years will be hardest hit by this statistic, at least psychologically.
Add to Newsvine
