Thursday, February 25, 2010

Yesterday's lousy new home sales number and the supply effect

New homes available for sale are at their lowest level since 1971.

The data come from

Population in the US in 1971 was about 2/3 the current population. Maybe nothing is selling because there is nothing to sell. It is hard for me to see how construction doesn't make a come-back this year.


Matthew said...

I can't agree with this assessment; you can't ignore the bloated inventory (and shadow inventory) of existing housing. In addition, I believe people/household has increased over the past couple of years too.

You are certainly correct that the current level is unsustainable, but I think very substandard levels of new housing sales can easily be sustained for more than another nine months.

daniel john said...

well i think that the graph shows the correct percentage...and it is very informative at all.

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