Okay, the quote comes from Friday but it’s still kind of key:
Even with the upward revisions to new home sales in October, November and December, 2011 was the worst year for new home sales since the Census Bureau started tracking sales in 1963. The three worst years were 2011, 2010, and 2009 with sales of 304, 323 and 375 thousand respectively.
Sales will probably increase in 2012, and sales will also probably be higher than the 323 thousand in 2010. But I expect this year will still be the third worst on record.
Remember, my thesis from late last year is that home prices are going nowhere but probably have stabilized – and that the real action in that sector comes from renovations and home improvement. A glance at Home Depot’s ($HD) latest earnings report tells me I’ve probably nailed it.
Head over for Bill’s look at the new home sales market and what he expects for 2012…