Earnings and home sales data this week
- Thread starter graphrix_IHB
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IrvineCommuter_IHB
New member
It is being reported that new homes sales went up 4.8 percent in September v. August. But the story seems fishy.
"Sales of new single-family U.S. homes rose 4.8 percent in September while the inventory of
homes fell and the median sales price rose, delivering unexpectedly benign news for the battered housing sector.
New single-family home sales rose to an annual rate of 770,000 from a revised rate of 735,000 in August, the Commerce Department said. Analysts polled by Reuters were expecting September sales to fall to an annual rate of 780,000 from the August previously reported rate of 795,000.
In September, the median sales price of a new home rose 2.5 percent to $238,000 from $232,100 in August.
There were 523,000 new homes for sale at the end of the month, a 1.5 percent drop from August. It would take 8.3 months to clear that inventory at the current sales pace, down from
the 9 months supply reported in August."
www.cnbc.com/id/21470011
Here is my issue with the story. . .they revised down the August sale rate by 60,000 (or about 7.5%) and then now use the lowered number to claim that the September figure shows an increase by 4.8 percent. No one has said anything about how August sale actually went down an additional 7.5 percent!!!! So next month, they can just readjust the September down 15% and then claim that October sales went up by double digits.
Also, I wonder how much of the "increase" was a result of all those gimmicks that the builders pulled.
"Sales of new single-family U.S. homes rose 4.8 percent in September while the inventory of
homes fell and the median sales price rose, delivering unexpectedly benign news for the battered housing sector.
New single-family home sales rose to an annual rate of 770,000 from a revised rate of 735,000 in August, the Commerce Department said. Analysts polled by Reuters were expecting September sales to fall to an annual rate of 780,000 from the August previously reported rate of 795,000.
In September, the median sales price of a new home rose 2.5 percent to $238,000 from $232,100 in August.
There were 523,000 new homes for sale at the end of the month, a 1.5 percent drop from August. It would take 8.3 months to clear that inventory at the current sales pace, down from
the 9 months supply reported in August."
www.cnbc.com/id/21470011
Here is my issue with the story. . .they revised down the August sale rate by 60,000 (or about 7.5%) and then now use the lowered number to claim that the September figure shows an increase by 4.8 percent. No one has said anything about how August sale actually went down an additional 7.5 percent!!!! So next month, they can just readjust the September down 15% and then claim that October sales went up by double digits.
Also, I wonder how much of the "increase" was a result of all those gimmicks that the builders pulled.
southoctracker_IHB
New member
I wondered too about the gimmicks. Not surprisingly, many builders have been seeing very high cancellation rates - as much as almost 50%.
graphrix_IHB
New member
Honestly the new home sales number is totally worthless. It is for homes that went into contract and not sold as in closed. With 40%-50% cancellations it makes for even more of a worthless number.
IrvineCommuter_IHB
New member
The numbers speak for themselves:
Pulte Homes, the No. 3 U.S. home builder, posted a quarterly loss Wednesday, on charges topping $1 billion and said orders fell 37 percent. The billion-or-so charge puts Pulte's write-downs and write-offs in the same ballpark of Centex, the No. 4 U.S. home builder, and D.R. Horton, the largest U.S. home builder, which reported a billion-plus charge last quarter.
Wednesday, M.D.C. Holdings, the No. 10 U.S. home builder posted a net loss of $155.4 million, or $3.40 a share, after posting charges of about $254 million. At No. 8, Ryland Group reported a loss of $54.7 million, or $1.30 per share, after charges of $128.1 million.
Pulte reported a third-quarter net loss of $787.9 million, or $3.12 a share, compared with a net profit of $190.2 million, or 74 cents per share, last year.
www.cnbc.com/id/21466043
ONE HUNDRED BILLION DOLLARS!!!!!
Pulte Homes, the No. 3 U.S. home builder, posted a quarterly loss Wednesday, on charges topping $1 billion and said orders fell 37 percent. The billion-or-so charge puts Pulte's write-downs and write-offs in the same ballpark of Centex, the No. 4 U.S. home builder, and D.R. Horton, the largest U.S. home builder, which reported a billion-plus charge last quarter.
Wednesday, M.D.C. Holdings, the No. 10 U.S. home builder posted a net loss of $155.4 million, or $3.40 a share, after posting charges of about $254 million. At No. 8, Ryland Group reported a loss of $54.7 million, or $1.30 per share, after charges of $128.1 million.
Pulte reported a third-quarter net loss of $787.9 million, or $3.12 a share, compared with a net profit of $190.2 million, or 74 cents per share, last year.
www.cnbc.com/id/21466043
ONE HUNDRED BILLION DOLLARS!!!!!