Back on May 19, I showed how the trend in new residential construction looks good. However, I cautioned that Americans have a long way to go until we have a solid economy with most Americans standing upon sound footing. It's likely, residential construction is two to three years away from having recovered.
Today, the Bureau of the Census released the latest New Residential Sales report for April, 2015.
True prices continue to fall reflecting the true state of credit in the USA. Average true prices as calculated in True Dollars™ are now lower than the low true prices hit during the early Clinton years after Clinton inherited the mess from the elder George H.W. Bush.
New houses sell at a 34% discount to the average price calculated from 1963 through 2001.
True median prices are worse today than during the early days of Richard Nixon. New house prices sell at a 29% discount to the average median sales price.
Builders' confidence reveals mixed signals.
Yet, builders seem to be speculating wildly still.
The road to full recovery is a long, hard one.