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Existing Home Sales Drop Year-Over-Year For First Time Since 2010

Despite surges in mortgage applications juxtaposed with notably downbeat commentary from KB Home and Lennar, existing home sales rose modestly in December (+2.4%) but missed expectations for the 2nd month in a row (+3.0%) for a SAAR of 5.04mm sales. Only the Southern region saw sales improve. However, for all of 2014, there were 4.93 million sales, a 3.1% decline from 2013 (5.09 million) - the first drop since 2010. This should be no surprise as NAR finally admits the problem (instead of blaming weather) - “Housing costs – both rents and home prices – continue to outpace wages and are burdensome for potential buyers trying to save for a downpayment while looking for available homes in their price range.” It's the price, stupid!

 

 

For the first YoY drop since 2010... as the "echo bubble" bursts...

 

The trend of weak housing data continues...

Housing Surprise Model Hits New Low pic.twitter.com/hL0THIZUx7

— Not Jim Cramer (@Not_Jim_Cramer)