Classic bubble behavior - units sold (i.e. dumped at the new low prices as the smart folks bail out) increased, as median price tumbled again.
It's interesting how the MSM are spinning this. They're reporting the GREAT NEWS - home sales up - as their headline. And they're quoting 2.2% decline in price - even though that's against March 12 months ago. The true price decline was down a whopping 6.5% from February.
The MSM also makes no point of the Centex $100,000 off sales, the huge incentives and cash-back used by builders to dump inventory, or the 8% commissions being paid. That would involve the MSM doing work of course, and not a rip-and-read.
Does anyone care what the cost of gas, or flour, or a milk was versus 12 months ago? NO! They care versus what it cost them last month. 101 folks.
Obviously, the smarter folks in the room see this as classic bubble behaviour. And that guy who bought a house 30 days ago for $1 Million that is now worth $65,000 less today.
Sales of new homes soared in March by the largest amount in 13 years, reflecting a rebound from bad weather in February. But the median price of the homes sold last month actually declined, providing evidence that the nation's five-year housing boom is slowing.
The median price, the point where half the homes sold for more and half for less, also showed a decline in March when compared to February, falling by 6.5 percent.
April 26, 2006
Posted by blogger at 4/26/2006