« What are the odds? | Main | What I Wish I Had Said »


March 23, 2007

Today's Housing Bubble Post - Bad News Spun Good

-- by Dave Johnson

Headline sounds great, no? Home Sales Rise Unexpectedly in Feb. But what about the story?

The increase pushed sales up to a seasonally adjusted annual rate of 6.69 million units, still 3.6 percent lower than a year ago. Sales fell by 8.5 percent for all of last year as housing hit a sharp slowdown after setting sales records for five straight years.
... "Sales cannot be sustained at this level, which is way above the pace implied by mortgage applications," said Ian Shepherdson, chief economist at High Frequency Economics.

The price of a median home sold last month dropped to $212,800, down by 1.3 percent from the same month in 2006. It marked a record seven straight months that the median home prime has fallen compared to the same period a year ago.

... "Our view is that the tightening in the subprime market will have a negative impact on home sales," Lereah said. "It probably won't postpone the recovery (in housing) but it will slow it." [emphasis added]

So the real story is year-over-year sales are down 3.6 percent and EVERYONE expects things to get worse.

Nice headline, though.

Posted by Dave Johnson at March 23, 2007 9:37 AM

Trackback Pings

TrackBack URL for this entry:
http://www.seeingtheforest.com/cgi-bin/mt/mt-t.fcgi/2797


Comments

Post a comment

Thanks for signing in, . Now you can comment. (sign out)

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)


Remember me?



Email this entry to:


Your email address:


Message (optional):


Return to main page