The Commerce Department reports sales of new homes are up a lot, running at a seasonally adjusted annual rate of 733,000 in November. That was 17.5% above a downwardly-revised October and 16% higher than a year ago and beat the MarketWatch consensus for a 658,000 annual rate. The median price was $318,700, about 1% higher than a year ago. At the current pace it would take 4.6 months to run through available supply.
Consumer sentiment fell again in December. The final reading of the University of Michigan consumer sentiment index was 95.9 versus November’s 98.5 for the lowest reading since September. Most of that decline was among lower-income households. Even though current conditions are seem to be strong, there was growing uncertainty about the future. Consumers were split about the Republican tax cut plan. While the small gain in take-home pay that will kick in starting in February might not spark an uptick in optimism, it might at least dampen any renewed pessimism.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
