Lambert here: More trouble….

By Wolf Richter, editor of Wolf Street. Originally published at Wolf Street.

Sales of new single-family houses have been zigzagging along low levels for months. In October, they rose 7.5% from September, after having plunged 11% in September, according to the Census Bureau today. At a seasonally adjusted annual rate of 632,000 houses, they were down 5.8% from the already low levels a year ago, and down 37% from two years ago.

These sales are based on signed contracts between buyer and homebuilder, and they’re no indication of how many of those deals actually close. And those sales that actually close are far lower amid a huge wave of cancellations. Homebuilders have been lamenting those cancellation rates for months. But those cancellations are not reflected here. We’ll get to them in a moment.

A similar plunge occurred in sales of previously owned homes:

Keep reading this article on Naked Capitalism (Yves Smith) - Blog.

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