Today’s Chart of the Day from The Kobeissi Letter, @KobeissiLetter on X, shows that the prices of new homes are falling and are now the same price as existing homes. Going back to 2008, this is normally not the case (think in reference to new vs. used cars). The reason given is that so many homes are locked into low rates and that supplies of existing homes are falling, which makes them more expensive. This scenario paired with the declining cost to build new homes as supply chains open up, and voilà, prices are now equal.
Price parity is not a normal state of affairs, so it will be interesting to see which side gives out first.
Samuel serves as Senior Vice President, Chief Investment Officer for the Crews family of banks. He manages the individual investment holdings of his clients, including individuals, families, foundations, and institutions throughout the State of Florida. Samuel has been involved in banking since 1996 and has more than 20 years experience working in wealth management.
Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.