Earlier this year in “New Home Sales vs New Car Sales,” we noted that new car sales were robust while new home sales were stagnant. The most recent data regarding new car and home sales indicate that dynamic remains the same.
Poor new home sales reflect the general state of the economy far better than the “robust” new car sales.
Here is why:
New home sales chart US. Bureau of the Census, New One Family Homes For Sale in the United States [HNFSEPUSSA], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/HNFSEPUSSA/, November 3, 2015.