Not only did new-home sales plunge in July to a record low going back to 1963, but the McMansion market saw no activity whatsoever -- for the second month in a row.

As David Rosenberg, the presciently bearish chief economist and strategist at Canadian asset manager Gluskin Sheff told clients Thursday: "The high-end market, in particular, is under tremendous pressure. In fact, it is becoming nonexistent."

Not a single new home priced above $750,000 sold in July or June, Rosenberg notes. As for houses priced between $500,000 and $750,000, only 1,000 new units were sold last month. When it comes to new homes that did find buyers in July, more than 80% were priced under $300,000.

"Just another sign of how this remains a full-fledged buyers' market -- at least for the ones that can either afford to put down a down payment or are creditworthy enough to secure a mortgage loan," Rosenberg says, adding that 25% of the household sector has a FICO credit score of less than 600.

Here's a nifty chart, courtesy of Haver Analytics and Gluskin Sheff, showing the trend for new-home sales prices. A buyer's market, indeed:


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mlunden

We were just talking about that report last week that said no new homes sold in July over $750k – so I pulled ‘sold’ info from just a few nearby towns and came up with three. Doesn’t include anywhere near of all South Florida, but also means that in just this area several. The link has info on these – they’re all new, all sold in July, and are all over $750k - FYI http://rmlsfl.mlxchange.com/Pub/EmailView.asp?r=1957182954&s=RML&t=RML

August 30 2010 at 12:26 PM Report abuse rate up rate down Reply
nicholsonrealty

What is this guy smoking, again. Either he checks facts or he goes back to Women's wear daily. Is he talking about Canada, some region in the US, 1-2 states or is he losing his marbles? I checked the Chicagoland MLS and not only at 750K, but at 1M to a high of 4.2M there were 200 closed sales in June and July 2010 and at least 20 of those were brand new builder inventory. He's probably talking about the area around his house in backwater Bon Temps. How can these people write for a living and get paid? This is unbelievable.

August 27 2010 at 10:39 PM Report abuse rate up rate down Reply
zambi

This data is for "new homes", what is the data for "existing homes" as I have mortgage brokers in upstate New York saying they are doing small but regular business on existing homes over $1 million. Can anyone comment on this please?

August 27 2010 at 6:49 PM Report abuse rate up rate down Reply
Michael

While the idea may be true, the data is far off. I am a REALTOR and I just ran stats for Northern Virginia. That is an awfull lot of "Non Sales" that sold last month and the month before and the month before...

August 27 2010 at 1:11 PM Report abuse rate up rate down Reply
switzarch

If this report is correct [verify], it might also signal a return to sensible residential design that isn't dedicated to proving how rich the owner is. It isn't as necessary these days to 'keep up with the Jones'es' as it used to be. That might be a good thing. 6500 SF for 2 people is silly. Look at the atypical Potomac, MD house. Rooted in a forgotten past and doomed to never be comfortable or friendly.

August 27 2010 at 12:52 PM Report abuse rate up rate down Reply
Mike Harris

You have to read the story as is and not assume things! "Rosenberg" is "Canadian" and "told clients" which is what this story is all about. While I find it interesting about our Northern neighbors this is NOT a story about U S home sales.If you MUST assume anything then assume that Mr. Rosenberg is correct.

August 27 2010 at 12:49 PM Report abuse rate up rate down Reply
cautomo200

This story cannot be accurate, there are several new homes in our area that are under construction that are above the $750K price....and most of the nicer existing homes have sold quickly...the under 300K range seems to have a glut of product on the market, and the prices are dropping to get them sold...This story is like most, the statistics are twisted to fit the authors opinions...but know that any statistic is developed to support the study.....always biased.

August 27 2010 at 11:15 AM Report abuse rate up rate down Reply
splintercottage

Good grief. Why publish and article like this. Soemthing cheap to put between the ads? Finding irrelevant "news" to support the professors theory by the just out of college munchkins. The problem here is not the article that may have been relevant in Canada but apparently that AOL only read the headline.

August 27 2010 at 10:50 AM Report abuse rate up rate down Reply
MPS71

Folks- I agree the info appears misleading but READ. The article is about NEW homes (new construction) NOT resales. It is correct that not a single NEW BUILD home over $ 500,000 closed in July. Read the chart folks- he is from Canada but his stats are from the US>. The most important factor here is that both NEW or RESALE that 70-80% of ALL sales are under $ 300,000 and have been for awhile.

August 27 2010 at 10:45 AM Report abuse rate up rate down Reply
2 replies to MPS71's comment
j

According the Houston MLS, this report is not accurate. There were approximately 75 homes sold durring June and July costing more than $750K. I just pulled the report this morning after reading this article.

August 27 2010 at 11:42 AM Report abuse +1 rate up rate down Reply
j

.....NEW homes, that is, not resales.

August 27 2010 at 11:43 AM Report abuse rate up rate down Reply
MPS71

Folks- I agree the info appears misleading but READ. The article is about NEW homes (new construction) NOT resales. It is correct that not a single NEW BUILD home over $ 500,000 closed in July. Read the chart folks- he is from Canada but his stats are from the US>. The most important factor here is that both NEW or RESALE that 70-80% of ALL sales are under $ 300,000 and have been for awhile.

August 27 2010 at 10:45 AM Report abuse rate up rate down Reply