Tales From The Banana Republic

Yesterday they told us that new home sales had soared; today we learn that they are sharply lower

This is the same game that they play with the weekly unemployment figures.

New single-family home sales fell slightly in October and the government revised sharply lower its estimate for the prior month’s sales, casting a small shadow over what has been one of the brighter spots in the U.S. economy.
The Commerce Department said on Wednesday sales dropped 0.3 percent last month to a seasonally adjusted 368,000-unit annual rate.

Government data for new home sales are subject to substantial revisions. Indeed, the Commerce Department cut its estimate for sales in September by 20,000 to a 369,000-unit rate.
The data leaves the pace of new home sales just below the pace reported in May, suggesting little upward momentum in the market for new homes.

Note to the government: You cannot govern if the populace assumes every utterance is a lie. Note to media: See note to government.

We have real trouble here. Not only do we have a crappy economy, run by buffoons, we also have the problem of not being able to see exactly how damaged the economy actually is.

- Aggie

1 Comment »

  1. Bloodthirsty Liberal said,

    November 28, 2012 @ 11:04 am

    Here’s a companion story from the Boston Glob:

    Buyers snapped up more than 4,000 single-family homes in Massachusetts last month, pushing the number of statewide sales for the first 10 months of 2012 above the total for all of last year.

    Warren Group, a Boston real estate tracking company, reported Tuesday that home sales in October increased by 21 percent, to 4,044, compared with the same month last year, reflecting increased optimism about the state’s housing market.

    Sales between January and October rose to 39,491, a 22 percent increase compared with those months in 2011.

    “Record low mortgage rates, an improved economy, and growing consumer confidence are boosting the housing market in Massachusetts and around the country,” said Timothy M. Warren Jr., Warren Group’s chief executive.

    The median home price remained relatively flat, however. For a single- family home, it held at $270,000 in October, similar to 12 months earlier, Warren Group said.

    What kind of market jumps 22% in volume without an accompanying increase in price? Not a healthy or confident one, that’s for sure.

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