muses of the moment

March 25, 2009

Fuzzy housing numbers

Filed under: Housing Market, The Banking Crisis, The Dollar Crisis, The Financial Crisis — totallygroovygirlfriday @ 2:25 pm

The Press is at it again. How can you make reasonable decisions in this financial crisis without the truth?

Chris Martensen did an excellent job of explaining the recent 5% increase in home sales last month. Click here for the whole story with REAL data.

The summary: the housing market is not recovering, it is continuing in its downward slope.

  • The 5% increase in February. In the past five years February has always been higher than January.
  • 73% of the homes “sold” in February were depressed properties, sold at auction, foreclosure process or bankruptcy.

Side note: housing prices are down 15% nationwide from last year. Some areas have seen more of a decrease than others. In my opinion, expect to see a nationwide decline of 30% at the bottom of this cycle.

BTW, this article, entitled, Factory Orders Rise Unexpectly After 6 Straight Drops, is a bunch of bull, too. Factory orders are the lowest since they started recording in 1992. Adjusted for inflation, it has dropped of the face of the chart.

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