New housing sales “unexpectedly” fall 7.6% in December
posted at 12:15 pm on January 27, 2010 by Ed Morrissey
Reuters falls back on its favorite adverb when delivering bad economic news, in one of the most expected events in economic journalism:
Sales of newly built U.S. single-family homes fell unexpectedly in December, data showed on Wednesday, the latest indication that the government-led housing recovery might be losing some steam.
The Commerce Department said sales fell 7.6 percent to a 342,000 unit annual rate from an upwardly revised 370,000 units in November. It was the second straight month that new home sales declined.
Analysts polled by Reuters had expected new home sales to increase to a 370,000 unit annual pace from November’s previously reported 355,000 units.
U.S. stock indexes fell on the data, while government bond prices held at higher levels.
“This isn’t good news. It should put some pressure on the market, especially coming after the disappointing outlooks we saw,” said Dan Cook, senior market analyst at IG Markets in Chicago.
How “unexpected” could this possibly be? In the last four weeks. we’ve learned that:
- US “unexpectedly” lost 85,000 jobs in December
- Overall home sales “unexpectedly” dropped 16% in November
- Foreclosures rose “unexpectedly”
- New housing starts fell “unexpectedly” in December
- Builder sentiment “unexpectedly” fell this month
- Home resales “unexpectedly” plunged in December faster than ever before
Honestly, considering all of these other indicators, a rise in new-home sales would have been flabbergasting. People aren’t buying because earlier stimulus incentives expired and sped up buying decisions that would have been otherwise made this year. More people are unemployed, which means they can’t afford to buy anything and can’t qualify for mortgages. They’re not buying new homes when people are desperate to unload resales and foreclosures.
Maybe the media should revisit some of their assumptions in order to get their expectations in order and common sense back in their reporting.
Blowback
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It’s not about me, but that’s unprecedented. Let me be clear about that.
Daggett on January 27, 2010 at 12:17 PM
This is unprecedented.
BadgerHawk on January 27, 2010 at 12:17 PM
LOL at Reuters. Punchline media.
RushBaby on January 27, 2010 at 12:19 PM
It’s unexpected because they truly do believe that Obama’s insane fiscal ideas should be making the country more prosperous.
Laura on January 27, 2010 at 12:19 PM
Change!
VelvetElvis on January 27, 2010 at 12:19 PM
ted c on January 27, 2010 at 12:20 PM
Look at it this way, if people had been buying houses in December, they wouldn’t have had any money left to spend on Christmas and a lot of retailers would have had poor sales instead of the robust sales they actually enjoyed!
…they what? they did?
nevermind
james23 on January 27, 2010 at 12:22 PM
BUSH’S FAULT!
Dale in Atlanta on January 27, 2010 at 12:22 PM
“Let me be clear, I was not part of any backroom deals that homebuilders and buyers were making”………….
…..Your friend, Barry.
Knucklehead on January 27, 2010 at 12:23 PM
Reuters wouldn’t expect water to be wet.
amerpundit on January 27, 2010 at 12:24 PM
Wait until they see the January figures on sales and refinancings. A whole bunch of new rules just went into effect that are killing mortgage lending. Rates are going up too. Good luck getting a loan for any home now.
rockmom on January 27, 2010 at 12:25 PM
I am not trying to give anyone a break but it was December. I would think that in the best of times sales drop due to weather and holidays. I think I would need to know what it does in “normal” times before I get to upset.
Cindy Munford on January 27, 2010 at 12:28 PM
Despite all the negative economic news, somehow some folks still think we’re in a recovery….
dogsoldier on January 27, 2010 at 12:28 PM
All this “unexpected” news, when the writing has been on the wall for a long, long time…..
I believe Obama and his advisors are stupid and/or shortsighted enough to be capable of hiding their own Easter eggs for this year’s White House Easter egg hunt.
UltimateBob on January 27, 2010 at 12:28 PM
Perhaps Reuters should poll some new analysts, rather than Emanuel/Axelrod.
Next Reuters story: Sun unexpectedly rises in the east this morning.
rbj on January 27, 2010 at 12:28 PM
“Maybe the media should revisit some of their assumptions in order to get their expectations in order and common sense back in their reporting.”
Major oxymoron….
lovingmyUSA on January 27, 2010 at 12:29 PM
Does anyone who can read still need to listen to this turd of a POTUS tell us what the state of the union is today?
MikeA on January 27, 2010 at 12:30 PM
indeed….is it gonna happen, don’t think so…
cmsinaz on January 27, 2010 at 12:30 PM
Rates are going to jump when the Fed ends its buying of mortgage backed securities in a few months. Unexpectedly.
Also keep an eye on the BLS revision to unemployment numbers next Friday when we discover rather unexpectedly that there were 800k more unemployed than we thought. This revision was announced on October 2nd, but will come as quite a surprise to the MSM, I’m guessing.
John9400 on January 27, 2010 at 12:31 PM
I wonder how often the word “unexpectedly” is going to come up tonight during the TOTUS SOTUA?
farright on January 27, 2010 at 12:32 PM
Do the powers that be @ Reuters realize they are unexpectedly making caricatures of themselves?
Juno77 on January 27, 2010 at 12:33 PM
This morning, the sun unexpectedly rose, 12 hours after the sun unexpectedly set last night.
angryed on January 27, 2010 at 12:33 PM
Agree. We know that state but it will be interesting to hear Ob*ma’s version of it, being the intellectual of all things.
Electrongod on January 27, 2010 at 12:34 PM
I\’m shocked. I would have thought the magic beans would have kicked in by now.
Vashta.Nerada on January 27, 2010 at 12:34 PM
Garbage in, garbage out.
So the “experts” Reuters polled, used the former “unexpected” 355,000 Nov numbers, regardless of the fact they were revised to 370,000 – to conclude Dec should be 370,000, yet were really 342,000 units.
Yet the real Nov 370,000 units was still down from Oct. and now Dec further down to 342,000 units = 7.6%.
So the experts were wrong to begin with – but in a “good” way, and continue to be wrong with Dec predictions.
In conclusion – the “experts” dont have a friggin clue, are guessing at numbers, +/- 5-8% each month – yet it is always reproted as “unexpected” regardless of the fact they are never right or accurate…
Odie1941 on January 27, 2010 at 12:36 PM
To paraphrase from “The Princess Bride,” he keeps using words like unexpected and unprecedented. I don’t think they mean what he thinks they mean.
RPL on January 27, 2010 at 12:36 PM
Look, I have no doubt that Obama is leading us on the road to ruin, but December was the coldest month in recent U.S. history with record snowfalls.
Here in D.C. they are going on about the decrease in sales. Well we did have a 22 inch snowfall and record wind chill. No-one did anything in the last half of December except shovel snow and try to salvage Christmas.
Kasper Hauser on January 27, 2010 at 12:36 PM
I won’t venture a guess on the exact numbers, but my feeling is that the renking will be something like this:
#1: I
#2: Me
#3: Inherited
#4: Unexpected
#5: Saved or Created
UltimateBob on January 27, 2010 at 12:37 PM
Dag, did you get an advance copy of the SOTU address, or are you like, the Amazing Kreskin or something?
JusDreamin on January 27, 2010 at 12:37 PM
Can we please retire “unexpectedly”?
steveegg on January 27, 2010 at 12:38 PM
about right, don’t forget fight and let me be clear
cmsinaz on January 27, 2010 at 12:40 PM
and those multi-word quips:
#6 “last 8 years”
#7 “previous administration”
#8 “I understand”
#9 “We must act now”
I could go on forever.
JusDreamin on January 27, 2010 at 12:41 PM
Hmmm. Just a question… what is the break even for snowfall amounts and home sales for the month of Dec in D.C.?
14 inches? 18? 22?
Not picking a fight, I just think its a silly attempt to equate “record” snowfall in DC to home sales in the country, considering one should expect snowfall of some amount, during the winter in D.C.
So again – once it hit 20 inches, was that the catalyst for lower national home sales???
Odie1941 on January 27, 2010 at 12:41 PM
Unprecedented unexpected results!
GarandFan on January 27, 2010 at 12:42 PM
Color me unexpectedly flabergasted.
kringeesmom on January 27, 2010 at 12:43 PM
You forgot “As I’ve always said…”
Bishop on January 27, 2010 at 12:44 PM
And the US still has non-union/gov’t people working….unexpectedly
search4truth on January 27, 2010 at 12:45 PM
Hey, this could be an interesting story for the HotAir blog, a tally of the number of times 0bama repeats his favorite words and phrases.
If only some brave soul was willing to suffer through the agonizing piece of garbage that the SOTU is sure to be.
UltimateBob on January 27, 2010 at 12:45 PM
The house and senate are going to “unexpectedly” flip to Republican if this keeps up.
The media is trying as hard as they can to make people believe that the economy is not as bad as it is. This is the exact opposite of how they reported economic news while Bush was president. They can’t help themselves while they are trying to help the president.
Mord on January 27, 2010 at 12:46 PM
ya2daup on January 27, 2010 at 12:47 PM
I expected someone would ask that!
ya2daup on January 27, 2010 at 12:48 PM
Any day that you can use a word like “flabbergasting” is a good day. :)
crazy_legs on January 27, 2010 at 12:52 PM
Okay time to fight fire with fire. If the state-run media wants to suggest that every downturn or bit of bad news is “unexpected” then it is time to describe the Obama economy as “one surprise after another.” But not in a good way.
highhopes on January 27, 2010 at 12:53 PM
“Make no mistake. If not for the stimulus package, housing sales would have been even lower. The stimulus package saved or created nearly 1 million new home sales.”
mwdiver on January 27, 2010 at 12:54 PM
That Nobel winning Krugman sure is a busy fella, doing all them there NYT columns and making all of the economic forecasts as well. You can tell it’s him doing them both, as he can’t hit the broad side of a barn in either job.
GnuBreed on January 27, 2010 at 12:54 PM
Haha, if it was unexpected what does that make the reporter? Clueless or dumb as dirt. You just can’t make these things up.
scalleywag on January 27, 2010 at 12:54 PM
indeed…i’m sure someone could tally with enough adult beverages to keep them happy
heh :-)
cmsinaz on January 27, 2010 at 12:55 PM
The
dogsnow ate my homework.angryed on January 27, 2010 at 12:55 PM
Well, there you have it. This unexpected decline in sales is clearly the result of unprecedented global warming!
jwolf on January 27, 2010 at 12:57 PM
It was unexpected that the real world wouldn’t respond to saying the words hope and change three times while looking in the mirror… I hear they even tap their ruby slippers together and sometimes close their eyes.
Obamanomics… unexpected results.
Managing expectations was something Bush was pretty good at. Looks like the one is not so talented as Mr. Bush.
petunia on January 27, 2010 at 1:01 PM
Memo to Reuters,
Such reports are entirely expected as they are part of the plan.
When a Marxist waving the Cloward Piven Strategy with his right hand and Saul Alinsky with his left, what other result could be anticipated?
Like expecting an elephant to give birth to a pretty, skittle s***ing unicorn, if you ask me.
turfmann on January 27, 2010 at 1:02 PM
Kasper Hauser on January 27, 2010 at 12:36 PM
Funny thing, the weather in Phoenix was perfect. I guess everywhere is not DC.
petunia on January 27, 2010 at 1:02 PM
Unexpectedly unprecedented?
The lists of most used phrases need to include:
“To those who say…” or “There are those who say…”
EA_MAN on January 27, 2010 at 1:03 PM
I can only think that the MSM has taken “unexpectedly” as some sort of inside joke.
Jason Coleman on January 27, 2010 at 1:04 PM
As I said, I have no doubt that Barack Obama is leading the U.S. down the road to ruin…
But bad weather does depress home sales and December was a terrible month weather-wise throughout the continental U.S.
That being said, I think the trend on home sales is downward and will continue to be downward.
We ran into icy economic seas during the Bush administration because of government growth and over-spending. Bush erred by encouraging reckless spending by consumers and trying to fight two wars without requiring sacrifice by the people.
That being said, Obama took over the helm and, instead of slowing down and trying to plot a course out of the ice field. he just said “Damn the navigation! Full engines! Full speed ahead!”
So we are screwed….and I do not expect Obama, the Democrats or the current Republican establishment to get us out of this.
What has to be done is to change the current Republican establishment.
Kasper Hauser on January 27, 2010 at 1:05 PM
The snow at my
homeworkhome sales.Jason Coleman on January 27, 2010 at 1:06 PM
Only an idiot would use the word ‘unexpectedly’ over and over and over again on the same topic.
“might be losing some steam” ??? I never saw much steam to begin with. Call me crazy.
bridgetown on January 27, 2010 at 1:08 PM
Kasper -
I am not sure if you are a RINO or just trying to straddle the fence on everything, but I am sorry – your assesment, beginning with your original “snowfall in DC leads to less house sales” is myopic.
End of Dec home sales are largely fueled by tax implications and/or new laws within a new calendar year, not the weather. Xmas has been Xmas on Dec 25 for years – and again – snowfall is expected in Dec in DC. You are pointing out 2 constants, sans “record snowfall” – which I playfully asked for the correlating snowfall amount and break even concerning home sales.
You then go on to say ” Bush erred by encouraging reckless spending by consumers and trying to fight two wars without requiring sacrifice by the people.”
What reckless spending of consumers did Bush encourage (operative word “reckless”) and how did Americans not sacrifice, being over 4,000 troops have been killed, hundreds of millions in troop donations from citizens and billions budgeted for troops, through Congress.
Did I miss the “military budget Tea Party’s???”
No, I believe I do recall leftnuts and Dems trying to stop funding…
Sorry fella, you are all over the map.
Odie1941 on January 27, 2010 at 1:15 PM
“Maybe the media should revisit some of their assumptions in order to get their expectations in order and common sense back in their reporting.”
Can you spot the mistake in Ed’s sentence?
It’s the word “reporting”.
notagool on January 27, 2010 at 1:16 PM
Where’s my Skittle pooping unicorn?
WordsMatter on January 27, 2010 at 1:16 PM
Not to worry, GM is reconfiguring the plans, namely dropping “skittles” for “M&M’s”, due to the lack of certain “colors” in skittles.
Expected release: 2017.
Odie1941 on January 27, 2010 at 1:25 PM
Last time I saw it, it was treading water in a sea of red ink and caught in a healthcare riptide. Prognosis is not good.
Extrafishy on January 27, 2010 at 1:27 PM
I would go a few steps beyond that Ed. I would claim that people aren’t buying stuff because they know a group of lying used car salesman transient morons is running the country.
In my humble opinion.
percysunshine on January 27, 2010 at 1:29 PM
Bill Murray from “Groundhog Day” Reports on “Unexpected” Rise in Unemployment Following Many Previous “Unexpected” Rises
Mervis Winter on January 27, 2010 at 1:31 PM
“I got you babe”
percysunshine on January 27, 2010 at 1:33 PM
Witness the power of hope. (versus the power of reality)
BobMbx on January 27, 2010 at 1:44 PM
If the government would do what is required under law, i.e. start to liquidate the most criminal banks, I’d be buying me some nice real estate now.
riverrat10k on January 27, 2010 at 1:44 PM
I was going with “common sense”.
BobMbx on January 27, 2010 at 1:45 PM
Just a quick aside. Re-reading “Atlas Shrugged” and everything coming from the government sounds just like the looters in the novel. Sin and spin. What @#$$oles.
riverrat10k on January 27, 2010 at 1:45 PM
If new housing prices keep falling.. I may be able to buy a house with 10 bucks! It is the property taxes that are going to kill me.
upinak on January 27, 2010 at 1:46 PM
You don’t mean……The Federal Reserve, do you?
BobMbx on January 27, 2010 at 1:47 PM
Watch out you put your money in precious metals. Soon, US currency will turn from a promissory note into an “I owe the US Treasury the amount indicated”.
BobMbx on January 27, 2010 at 1:49 PM
Was thinking more of the FDIC. They are REQUIRED UNDER LAW to review banks financials and to ORDERLY LIQUIDATE any bank that can’t come up with the capital requirements. Oh, and maybe start ENFORCING the requirements, oh, and MAKE THE LARGE BANKS PAY THEIR FDIC INSURANCE PREMIUMS.
Talked to a fella the other day making a mint on “green initiatives” and “process and physical plant improvement” consulting. He is buying gold, real estate, and other assets that have at least SOME value. He figures he may lose some value, but not all of it.
riverrat10k on January 27, 2010 at 1:56 PM
I already do Bob. Copper… why? everyone needs it for something… it is the tarnished gold of the metal world.
upinak on January 27, 2010 at 2:06 PM
Odie 1941
I am not sure if you are a RINO or just trying to straddle the fence on everything,
No. I just think you have to cut Obama a little slack…what with him being black and all…
{That is sarcasm in case the concept flies over your head.)
My point is that the GOP recklessness and irresponsible governance relative to budget deficits set up the housing/stock/credit bubble to begin with. You can’t blame Obama for that.
BUT THE FACT THAT HE DIDN’T CAUSE THE PROBLEM DOES NOT EXCUSE HIM FROM RESPONSIBILITY FOR HIS SUBSEQUENT POOR ECONOMIC DECISION AND LACK OF ECONOMIC LEADERSHIP.
(I am shouting so you will hear me…)
As someone said, Obama inherited a crisis and turned it into a catastrophy.
And my corollary point is that returning Congress to the same earmark-crazy, wild-spending, pron-amnesty Republican Leadership (John Boehner, Mitch McConnell, John McCain, any member of the Bush family) is not a solution.
We have to change the GOP leadership and make them the party of limited government and fiscal responsibility.
Not sure if that makes me a RINO as you claim…Rather I think it makes me a fiscal hawk conservative.
But housing sales do react to weather…. That’s just a fact.
Kasper Hauser on January 27, 2010 at 2:11 PM
The word unexpectedly and the words the economy will be better in six to twelve months have become ubiquitous and chronic. Some year they will return to their nominal meaning rather than the opposite of their nominal meaning. I won’t hold my breath.
burt on January 27, 2010 at 2:22 PM
But the economy will be better in six to twelve months…
Six to twelve months after Obama leaves office.
Kasper Hauser on January 27, 2010 at 2:24 PM
There seems to be a small debate about investments in metals. I also invest in commodity stocks. I get a news letter which has an interesting table about 14 commodity prices for the last ten years, as well as some comments. Here are two excerpts.
“Last year, only three of the 14 ended up underwater for the year, with coal coming in at rock bottom at minus 13 percent. Four of the industrial metals – copper, lead, zinc and palladium – each rose more than 100 percent in 2009.”
“Gold had the most positive years – its streak now stands at nine straight years after a 5.5 percent loss in 2000, when the bullion price dipped below $265, roughly a quarter of the current price. Oil, platinum and silver all had eight positive years during the decade, while nickel had six down years.”
The document has the following address.
http://www.usfunds.com/investor-resources/investor-alert/?SR=2
burt on January 27, 2010 at 2:47 PM
Please explain to me how a peice of paper is going to help you in the end? Let’s say something happens… you are going to be left with a peice of paper worth nothing as I and others (and what little you invested in) concerning metals that are ready to process… will have out Iron age income.
Man makes wealth… but what is wealth when you are in need and trying to survive?
upinak on January 27, 2010 at 2:53 PM
So you meant to say what you said in your 3rd post, not the other 2… I get it.
As to the weather and home sales, heres a question: If you can save, lets say 1% in interest by buying a $450k home by the end of the year, how much will the weather dictate your $450k purchase???
Your initial attempt to qualify down Dec home sales, via snowfall amount in DC failed on every and all accounts.
As to your other posts – its clear you dont stand for anything, though the convenient “conservative fiscal hawk” comes in handy. You do know its easy to extrapolate a persons leanings, based on their postings, right?
SOrry fella, you write and think like someone trying to make a stand, though you dont make one, yet want to appease everyone with BS. Its why you havent tried to explain the outlandish “no one made a sacrifice” comment, the break even for snowfall to not effect home sales, the silly “Bush wanted consumers to spend recklessly” and well, 90% of what you initially said.
As I assumed rightfully, based on your first 2 posts – you are a middle of the road guy on everything, stand for nothing being you cannot back up 1 ridiculous statement you have made. Boiler plate “I am a fiscal conservative” doesnt cut it, namely when you made the inane Bush – consumer comment.
Drive by opinions are worth less than the drive by media…
Odie1941 on January 27, 2010 at 3:02 PM
DC gets very little snow. I live in the neighborhood. We got a little more than 22 in. Some years we don’t get any. Prior to this winter the record for a single snow storm in December, not for a month, was only 14 in. The record for a single snow storm in any month was 22 in.
This storm would have been a walk in the park in many parts of the country. In this area it slowed a lot of things down. We do not have the investment in snow clearing which many places do.
burt on January 27, 2010 at 3:18 PM
The “unexpectedly” meme is just lazy journalistic shorthand for, “We can’t seem to wish our way out of this depression masquerading as a recession, no matter how many times we click our heels together and chant that it’s over.”
The people who can’t believe that wishing doesn’t make it so when it comes to jawboning the country into an economic recovery are the same ones who were determined to talk us into a recession in 2007 and 2008. They have zero idea of how the economy works, so they’re reduced to blind faith in the false messiah when it comes to their reporting.
Spurius Ligustinus on January 27, 2010 at 3:45 PM
Odie1941
I think I understand the reason we disagree. I was simply making a point about the effect of bad weather on housing sales being a factor in December, while you are just being a dishonest little wuss who argues incessantly because he hasn’t been laid in the last two decades.
(Now that last bit is not a fact.–I’ll be the first to admit it. But it is a good theorythat seems to explain the empirical evidence.)
For instance I mentioned the snow in DC as an example, but I repeatedly stated, the bad weather in December was pretty much nationwide. Check it out son.
Second, I never said “no one made a sacrifice”. That is ludicrous. Military personnel and their families have made sacrifices from large to enormous.
What I said was that Bush didn’t ask the American people to sacrifice. We were to fight wars costing multiple billions every month without being asked to pay more taxes or cut spending elsewhere (my preference) to fund it. And that bill is coming due now along with all the unpaid bills for our vast and underfunded entitlement programs.
But I really do not wish to fight with you. It is tiresome and since it doesn’t really get to the source of your problem (sexual frustration), it is not really a productive enterprise. I would suggest you save your money for a hooker or, if that is too costly for you, a fleshlight.
Good luck with that.
Kasper Hauser on January 27, 2010 at 4:10 PM