I think this data is generally suspect, being it's from the government, but here it is anyway - pretty ugly.
We especially know the median price number is completely, totally and wholly bogus and unreliable, as it does not include the massive incentives being offered to move all this dead inventory (cars, pools, cash back, etc).
The media will just report the numbers without actually doing any reporting, so people will be led to believe that prices aren't tanking. Bad news folks. They are.
There's this little thing called supply and demand, and we all know what happens to prices when supply skyrockets and demand tanks. Econ 101.
WASHINGTON, DC, United States (UPI) -- New home sales in the United States last month tumbled 4.3 percent from the previous month`s level, the Commerce Department said Thursday.
Economists had expected sales of new one-family residences to decline 2.7 percent to about 1.105 million.
Instead, the figure was 1.072 million, which contrasts with 1.12 million in June and is about 21.6 percent below the July 2005 level. Meanwhile, the median sales price of new homes fell in July to $230,000.
The new data are expected to reinforce the perception that the U.S. economy is slowing significantly and that the central bank has no reason to resume its interest rate increases next month.
August 24, 2006
Posted by blogger at 8/24/2006