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Tags: housing | market | sags | façade | gold

Housing Market Sags Behind the Façade

Housing Market Sags Behind the Façade
Flynt | Dreamstime

By    |   Thursday, 02 November 2017 02:52 PM

The headlines on September’s new house sales are touting a huge increase in sales, now at an annualized rate of 667,000 per year, or an increase of nearly 20% from August’s figures.

Digging deeper into the numbers shows that those figures are due to the magic of statistical adjustment – actual sales for September were only 52,000, up from 45,000 in August. While that’s the highest September figure since 2007, it’s still only the fifth-best monthly figure this year.

It’s also just barely over the 49,000 new homes sold in September of 1965, when the US population was less than 190 million. Even with new home sales higher than in the past few years, the per capita rate this September was still one of the lowest in the last 25 years.

“Financial media are looking for anything they can to advertise a strong economy, but there’s just not that much there,” said Trevor Gerszt, CEO of Goldco Precious Metals. “New home sales may be higher than they were a few years ago, but they’re still historically low, or at best nearing average.”

Comparisons to 2007 are also apt since the housing bubble was already in decline by that point. And with stock markets in bubble territory and bound to fall eventually, will home sales follow?

“A lot of investors are wary of bubbles forming throughout the economy. Every time they hear comparisons to 2007, they take steps to protect themselves,” said Gerszt, also a Newsmax Finance Insider. “We expect gold prices to rebound towards the end of the year on increased demand due to deteriorating economic data.”

Andrew Packer, editor of the Resolute Wealth Letter, agrees. “With gold still largely out of favor with the market, it has substantial room to run relative to other assets," said Packer,.

"And unlike housing or corporations, it’s not saddled with debt. That could be a critical factor for gold’s rally going forward,” said Packer, also a Newsmax Finance Insider.

The real test for new home sales will be the October numbers that come out in late November. Home sales often show a slight peak in October before falling again during the cold winter months.

© 2022 Newsmax Finance. All rights reserved.


Economy
Digging deeper into the numbers shows that those figures are due to the magic of statistical adjustment – actual sales for September were only 52,000, up from 45,000 in August.
housing, market, sags, façade, gold
361
2017-52-02
Thursday, 02 November 2017 02:52 PM
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