Inflation Alert! Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning.

Median sales price $361,800, Avg. price $428,700

https://www.census.gov/construction/nrs/pdf/newressales.pdf

Sales of new single-family houses in June fell by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau today. This has brought new house sales back to pre-pandemic levels.

r/Superstonk - Inflation Alert! Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. Median sales price $361,800 โ€ฆ
r/Superstonk - Inflation Alert! Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. Median sales price $361,800 โ€ฆ

Supply jumped to 6.3 months at the current rate of sales, as unsold speculative inventory for sale jumped to 353,000 houses (seasonally adjusted), the most since December 2008

r/Superstonk - Inflation Alert! Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. Median sales price $361,800 โ€ฆ
r/Superstonk - Inflation Alert! Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. Median sales price $361,800 โ€ฆ

The median price dropped by 5.0% in June from May's $380,700 to $361,000, (lowest since March). In April, the median price was up 22% year-over-year; in May it was still up 20%; in June, it was up 6.1% year-over-year

r/Superstonk - Inflation Alert! Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. Median sales price $361,800 โ€ฆ

Is the market starting to run out of steam?

So what is happening?

Almost nothing was sold in the under $200,000 price category (2% of sales in June). The under $300,000 price category accounted for only 29% of total new house sales (down from 39% June of last year).

r/Superstonk - Inflation Alert! Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. Median sales price $361,800 โ€ฆ

Thatโ€™s where all the buying had been occurring when everything was going gangbusters, but anyone looking for a new house under $300,000 is now priced out.

On the high end though, people with money are loving the Fed going brrr!

Houses with a price of over $500,000 accounted for 28% of total sales in June, up from a share of 23% in May, 15% in June 2020, and 14% in June 2019.

At the high end, big money is spending on new houses. If you can't spend more than 300k on a house? Enjoying renting for more than what a mortgage is.

r/Superstonk - Inflation Alert! Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. Median sales price $361,800 โ€ฆ
u/Alldayshorts420

This is what this new Fed-directed money-printing economy has turned into, inflated asset prices that has priced people out of homeownership!

I just wonder how long the high-end demand can prop up the housing market? Especially since it was the 'little guy' carrying the burden last year--numbers show they are now priced out.

Prices are all still jumping though!

The Construction Cost Index by the Commerce Department was also released today. It tracks construction-related costs of single-family houses under construction but excludes the cost of land and other non-construction costs.

In June the index rose by 0.7% from May. Over the past six months annualized, the index spiked by 13.8%. Year-over-year, the index spiked by 11.1%, the biggest year-over-year jump since May 1980!

r/Superstonk - Inflation Alert! Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. Median sales price $361,800 โ€ฆ

https://www.census.gov/construction/nrs/pdf/price_uc.pdf

All of this happening in the backdrop of the Fed still plowing away with $120 billion in assets purchases each month:

$40 billion a month in mortgage-backed securities. This will continue to depress mortgage rates and only continues to add gasoline to the inflation fire.

$80 billion in Treasury securities a month (with policy rates near 0%): represses short-term and long-term interest rates in general, and inflates asset prices and consumer prices, which further DESTROYS the purchasing power of the dollar.

TL:DR The Dollar losing purchasing power + Inflation = Permanent Loss of purchasing power.

Unless one of the many other catalysts triggers the MOASS, I believe inflation is the match that has been lit that will light the fuse of the rocket.

Buckle Up.

Reddit Post