My friends at the NAR are out with their propaganda report this morning. I saw the headline about the tremendous surge in sales to four year highs. It prompted me to do some fact checking. Here are a few facts:
- The annualized rate of sales in February 2010 was 5.02 million.
- The annualized rate of sales in February 2011 was 4.88 million.
- The annualized rate of sales in February 2012 was 4.52 million.
- The annualized rate of sales in February 2013 is 4.98 million.
We are supposedly in the midst of a strong housing recovery, with the lowest mortgage rates in history and existing homes sales are trending below 2010 and fractionally above 2011. Does that jive with the bullshit being spewed by the MSM?
The NAR declares that SEASONALLY ADJUSTED sales are up 10.2% over last year. Here is a link to the real data:
It seems the NON-ADJUSTED number was up only 6.3% – what a shocker. It’s amazing how those seasonally adjusted numbers are always higher.
The NAR isn’t touting the fact that the percentage of distressed sales (foreclosures and short sales) jumped from 23% in January to 25% in February. The percentage of investor purchases jumped from 28% in January to 32% in February. Both of these facts are surely a sign of a strong market driven housing recovery. Right?
Let’s look at a few more facts:
- There were a total of 305,000 homes sold in February in the entire country. Of these sales, 76,000 were distressed sales and 98,000 were to Wall Street investors. That means there were a total of 131,000 NORMAL traditional sales between a willing homeowner and someone who wants to live in that home. Think about that. There are 115 million households in this country and about 13 million households underwater on their mortgage.
- As a comparison, there were a total of 291,000 homes sold in January and 143,000 of those sales were non-distressed/non-investor sales. That means that REAL non-manipulated home sales DROPPED by 8% in February over January.
These are the facts folks. The housing market is being manipulated by Wall Street to drive prices artificially higher. There is no real housing recovery. Propaganda and MSM spin can’t change the facts. Would the NAR or Larry Yun ever lie to you? It’s Always the Best Time to Buy.