New Homes Sales Fall

This morning, the Census Bureau said that 571,000 new homes were sold in July. That’s an annualized number. That’s down 8.9% from a year ago.

This is an ugly report but I wouldn’t call it problematic just yet. This series can be very volatile. Here’s a look at new home sales going back to 1963.

You can see just how out-of-whack the last bubble was. Even after several years, we’re still not back to normal. The report for July was still below nearly every report from 1992 to 2007.

The other news we got today was that Lowe’s (LOW) bombed its earnings report. This is interesting because Lowe’s is strongly tied to the housing market.

The company also lowered its full-year earnings report to $4.20 to $4.30 per share. Wall Street had been expecting $4.62 per share.

Posted by on August 23rd, 2017 at 11:25 am


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