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Update
chipmunk
05-24-2007, 3:04 PM | Post #2391185
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Here is a quote from a Marketwatch article titled U.S. Stocks Fall Sharply After Post-housing Rally:
Stocks earlier jumped after news that sales of new U.S. homes unexpectedly surged 16% in April, to a seasonally adjusted annual rate of 981,000, the Commerce Department said Thursday.
The number far exceeded the 865,000 pace expected.
Sales, however, were boosted by plunging prices. While the inventory of unsold homes fell by 1.5%, the median price of a new home plunged 10.9% over the past year.
"This is a blockbuster number but the beneath the curtain, we still see signs of weakness," said Kathy Lien, chief strategist at DailyFX.com.
The huge drop in the price of median homes, she noted, "means that builders are basically putting a fire sale on inventory."
"What will be most important is whether there is a divergence between existing and new home sales tomorrow as existing home owners may be more price sensitivity and in less of an urgency to sell," she said.
So, it looks like prices are down, but, that, in turn, boosted sales. Maybe the housing market is stabilizing.
Dan
Originally posted in thread: 59066
Topics
blockbuster
builders
housing market
sales
stocks
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