Trumpeteers rejoice. “Best Economy Evah!!!”. In case you didn’t notice, the trade deficit also reached and all-time high today, up $14 billion since the Great Orange One ascended to the throne. The housing market is now in the process of a slow motion crash. Prices have just begun to fall. There is another 20% to 30% to go. Thank God Fannie and Freddie came back with those 3% down mortgages. Millions of morons who bought in the last 3 or 4 years will be substantially underwater in their mortgages in no time.
Housing Bubble 2.0 is bursting and the fools, tools, and idiots who were lured into it will be getting a good fucking. All hail Trump and his economy. When the economy and stock market were going up due to his reckless adrenaline corporate tax cut injection, he took full credit. Now that we are headed into recession and a stock market crash he’ll blame the Fed and the Democrats. His Trumpeteers will believe him. Idiots.
Following the small MoM blip higher in existing home sales (though dismal YoY plunge), new home sales were expected to rebound in October (after plunging 5.5% MoM in September) but instead they utterly collapsed – crashing 8.9% MoM.
New home sales have now missed expectations for seven consecutive months
The drop in purchases was led by a 22.1 percent slump in the Midwest, and an 18.5 percent decrease in the Northeast. The South had a 7.7 percent decline while the West fell 3.2 percent.
Tumbling a massive 12% YoY – the biggest drop since April 2011…
And just for good measure, the median price tumbled to $309.7K from $321.3K, lowest since Feb 2017.
And supply is soaring…
But, but, but… Homebuilder valuations are back at their weakest since the great recession…