JUNE 2015 NEW RESIDENTIAL SALES REPORT FOR MAY. ARE WE HEADED TOWARD RECOVERY AT LONG LAST?

So the Bureau of Census minions released the June 2015 New Residential Sales report with the latest one-month lagging data, the May 2015 data.

The picture looks great. We have been headed in the right way the end of October 2010 although it has been a tough slog.



We're still far from peak sales, quite far. Quarter over quarter and year over year looks solid.



From an average price viewpoint, in True Dollars™, it continues to be the best time to buy. The May 2015 average price is -35.1% below the average price between January 1975 and July 1994.



Builders' confidence has stayed strong.

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NEW RESIDENTIAL SALES FOR APRIL 2015 SHOWS FULL RECOVERY IS STILL A WAYS OFF. NEW HOUSES SELLING AT 34% DISCOUNT ON AVERAGE

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.

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