I get tired poking holes in the MSM and NAR monthly propaganda about the “housing recovery”. The headlines declared existing home sales at a four year high. Here is the NAR press release:
Here are the facts:
- Annualized home sales have been FLAT at about 4.35 million for the last six months despite the lowest mortgage rates in history.
- Existing home sales are at 1999 through 2002 levels and are still down 40% from 2005 levels.
- When you dig into the release you find that 18% of the sales are either foreclosure sales or short sales.
- The most interesting statistic is that a record 32% of all existing home purchases are by INVESTORS. This is up from 29% last year. Flip that house baby!!! What could possibly go wrong?
- So, you have a total of 400,000 houses sold in the entire US in April and only 200,000 are real people buying from other real people.
- The 11% price increase has been completely driven by Blackrock and the other Wall Street shysters.
Yes, the housing recovery is awesome blah blah blah
Why would mortgage applications be plunging and not be any higher than they were in 2010 if there was a housing recovery? Inquiring minds want to know.