New home sales were disappointing today at a 350,000 annual rate which missed expectations for 372,000. I can’t say I’m shocked to see these numbers as it is obvious that the economy has slowed down a bit particularly in the area of job growth. One of the problems that led to disappointing numbers actually could be a positive moving forward as there is a supply shortage of new homes due to the decrease in construction.
This should help reduce the existing home supply while leaving ample opportunity for new home development, which ultimately will lead to job creation.
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