Here is the blaring headline in the MSM:
New home sales hit five-and-a-half year high in January
The Wall Street shysters and CNBC bimbos are ecstatic. Of course, maybe we should examine the facts within the Census Bureau report:
- There were 34,000 new homes sold in the entire country in January. There are 75 million homes in the country.
- Of these 34,000 new homes “sold” in January, 10,000 were actually built. A contract can be cancelled for a nominal penalty amount. When housing went south for Toll Brothers, the cancellation rate exceeded 30%.
- There were 32,000 new homes sold last January.
- The median price has fallen by 7% since April.
- New home sales are pacing 70% below 2005 levels, 40% below levels in the mid-1980′s when mortgage rates were 12%, and 25% below levels in the mid-1960s.
- Mortgage purchase applications fell last week to the lowest level since 1995. Do mortgage applications fall to a 19 year low if housing is going gangbusters?
The MSM is spinning a yarn to keep the ignorant masses sedated. Do these charts reflect a strong recovering housing market? Housing has begun its 2nd collapse in the last 8 years.