Hello, Subscribers:
Haymaker readers probably know that housing data, like the unsold homes chart we flagged recently, often behaves more like a risk asset, as do other macro-economic trends. That’s what makes this one so striking. For the first time in modern history, a new home in the U.S. is cheaper than an existing one, by a full $33,500.
To me, the below visual speaks volumes, if that's not too much of a mixed metaphor, about the present upside-down nature of the U.S. housing market.
New home vs existing home prices since 1999
Let’s be clear: this isn’t just about buyer fatigue or builder discounts, it’s a full-blown structural distortion.