New Home Sales: Not as bad as it first looks, at least for us!

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The market declined yesterday, probably due to buyer’s remorse from overspending on Black Friday and the need to find a way to pay for it all! We’re kidding, of course, but the narrative is as believable as any other reason you’re likely to read in the media for yesterday’s market downturn.

New Homes Sales Data

What caught our attention was the release of October 2023’s new single-family home sales data. Sales were down by 5.6% compared to September 2023 and fell below economists’ estimates.

This news might appear negative, especially considering our significant exposure to the housing market. However, when put into perspective, October 2023’s sales, compared to last year, still reflect a reasonable performance. Given the scarcity of existing homes, discussed in last Wednesday's newsletter,?the trend of buyers turning towards new homes persists. An even deeper analysis reveals that sales in the South, where our exposure lies, remain notably high—an encouraging sign for our investments.

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