Discussion in 'Trading' started by crgarcia, Jan 28, 2008.
Bad as expected
Dec 2006 estimate was 1,019,000 and actual is 604,000!
Why does this type of release suprise people? Did anyone really think they would see good numbers?
It's not a question of whether it would be a good release but HOW bad it would be. Go over the numbers and see for yourself.
Nope. Obviously a nice short term fade.
New Home Sales Fall
Monday January 28, 10:23 am ET
By Martin Crutsinger, AP Economics Writer
New Home Sales Dropped in 2007 by a Record Amount; Prices Posted Weakest Showing in 16 Years
WASHINGTON (AP) -- Sales of new homes plunged by a record amount in 2007 while prices posted the weakest showing in 16 years, demonstrating the troubles builders are facing with a huge backlog of unsold homes.
The Commerce Department reported Monday that sales of new homes dropped by 26.4 percent last year to 774,000. That marked the worst sales year on record, surpassing the old mark of a 23.1 percent plunge in 1980.
The government reported that the median price of a new home barely budged last year, edging up a slight 0.2 percent to $246,900, the poorest showing since prices fell by 2.4 percent during the 1991 housing downturn.
The new report reinforced the view that housing is currently undergoing its worst downturn in more than two decades, with the slump threatening to surpass in some ways the severe housing recession of the early 1980s.
The housing weakness has dragged down overall growth and sent shockwaves through the rest of the economy including the financial sector, which is dealing with billions of dollars in losses in subprime mortgages. Some analysts are worried that the fallout could become so severe it will drag the entire country into a recession.
The Federal Reserve unexpectedly cut a key interest rate by the largest amount in more than two decades last week following an emergency meeting, and it is expected the Fed will cut rates further at a regular rate-setting meeting this week.
The 26.4 percent drop in sales for 2007 represented weakness in every part of the country except the Northeast, where sales posted a small 1.6 percent advance. Sales recorded declines of 32.2 percent in the West, 26.7 percent in the Midwest and 26.3 percent in the South.
16 YR LOWS....
and they said the bottom would be in by now...
Market pushes the expected news aside for once and returns to where it was earlier in the session.
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