The DJUSHB (Dow Jones Home Construction Index) is down 2.6% today. Several individual homebuilder stocks are down over 3%, which is more than the HUI gold stock mining index is down.
August existing homes sales as compiled by the National Association of Realtors were released this morning. Once again, despite a Wall Street forecast for a 1% increase in sales over July, existing home sales dropped nearly 2% month to month and 5.3% year over year. This is based on the statistically manipulated and annualized rate. Using the not-adjusted numbers, sales dropped 3% month to month and 7.5% year over year. July’s initial estimate of sales was revised lower. Inventory expressed as ‘months supply’ spiked up 10%. The inventory right now – at the end of the selling season – is as high as was going all the way to 2011.
When you look at the internal statistics, the report is even more bleak…
This post was published at Investment Research Dynamics on September 22, 2014.
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