Oh look! More good news on as a result of Obamanomics
Sales of new homes dropped to a record low in May, according to new government figures released Wednesday, providing a gauge of the market’s dependence on a federal stimulus program.
The Commerce Department figures showed that new single-family homes sold at a seasonally adjusted annual rate of 300,000 in May, down 32.7 percent from the revised April rate of 446,000.
Analysts had expected sales to fall to about 400,000 in May after a government tax credit for new buyers expired at the end of April. Many said the actual figure was exceedingly low.
“That new home sales would decline in May following the expiration of the home buyers credit is not at all surprising,” said Dan Greenhaus, chief economic strategist for Miller Tabak, in a research note. “However, we would be lying if we said the size of the drop was not shocking.”
Mr. Greenhaus said the 32.7 percent drop was the largest since the government started compiling the data in 1963, surpassing the 23.8 percent decline in January 1994. The May sales rate is 18.3 percent below that of May 2009, when the figure was 367,000.
“And now you are going to see some weak numbers for a while,” Mr. Shapiro said. “We think prices have to come down further and there is too much supply. It is going to be quite a struggle for several months.”
The tax credit “has just muddled the data,” said Mr. Newport. “I personally think the tax credit has mainly shifted activity from one period to another.”
Well, duh! This is the same thing we saw with the "Cash for Clunkers" program. Again, it appears that all that has happened is they kicked the can further down the road.
Still waiting for the Obamapologists to come out and tell us how this is good
news, or that it would be worse
, probably much
worse, without the "stimulus" or something, anything
to illustrate that Obamanomics are simply a bad mistake. So far they've been quite silent here on all of the good news of this administration.
There's likely to be a certain amount of karmic justice in all of this. Instead of letting things be and letting the economy sort itself out early in his presidency, Obama (Intervener-in-Chief) couldn't help but meddle (well, and loot a few hundred billion dollars to payoff his campaign debts). This has resulted in stretching the pain out further and pushing the recovery further down the road. Timing could be, let's say, unfavorable
for Mr. Obama from an election (or at least mid-term election) perspective. He might find himself actually having to be bi-partisan (rather than just talking about it) after 2010.