karim on existing home sales

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Posted by warren mosler (65.113.90.26) on 10:29:14 10/24/07

Housing numbers are becoming like Japanese economic data during the 90s, weaker than expected, but that was expected.

Existing home sales down 8% in Sep and down 19.1% y/y.

Mths supply jumps from 9.6 to 10.5.

Median price down 5.7% m/m and 4.2% y/y.

Not a good sign when sales don t respond to lower prices.

Fed always views existing home sales as the more important barometer for the consumer than new home sales-basically, households can only extract whatever positive equity they may have in their homes through existing home sales. Existing sales based on closings, not contract signings, so not as timely an indicator as new home sales, which are out tomorrow.

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Subject:	Re: karim on existing home sales
Comments:	: Housing numbers are becoming like Japanese economic data during the 90s, weaker than expected, but that was expected. : : : : Existing home sales down 8% in Sep and down 19.1% y/y. : : Mths supply jumps from 9.6 to 10.5. : : Median price down 5.7% m/m and 4.2% y/y. : : Not a good sign when sales don t respond to lower prices. : : : : Fed always views existing home sales as the more important barometer for the consumer than new home sales-basically, households can only extract whatever positive equity they may have in their homes through existing home sales. Existing sales based on closings, not contract signings, so not as timely an indicator as new home sales, which are out tomorrow.
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