Housing Hit

April new home sales dropped 7% M-o-M, and 27% Y-o-Y to an annual rate of just 591,000, the lowest level since 4/20, the worst of the pandemic. Moreover, for sale new home inventory has skyrocketed from 4.7 months in 4/21 to 9.0! No wonder builder sentiment is crumbling. Interestingly, the gap between the average and median new house price is yawningly huge, suggesting a shift to much more expensive homes.