The Data Tell A Much Darker Story
But the data below show us that actual new home sales and housing starts currently rest very near half-century lows. How can this be? What we see at present with new home sales and construction starts is what we saw at the depths of every US recession of the last 50 years. These data points suggest that the current is anything but a normal housing recovery.
Here are the numbers are current through April of this year:
(Source: US Census Bureau)
Accompanying the dearth of new home sales and starts is the fact that the number of new mortgage purchase applications currently rests near the lows seen since 2009. Just how can prices be ascending so spectacularly when new home sales are in prior recession territory, new housing starts have not recovered, and the number of new mortgage purchase applications has not climbed from the depths seen in 2009-2010?