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March 24, 2005
Holy Housing? Thur., March 24, 2005, 10:48 AM
CNBC Economist Steve (10:14am ET): "Liz, pass the oxygen! I'm overwhelmed by these stratospheric, breathless and stunning housing numbers!"
Hot off the wire is a report as follows:
WASHINGTON (MarketWatch) - Sales of new homes jumped about 9.4 percent in February to a seasonally adjusted annual rate of 1.226 million, the Commerce Department estimated Thursday.
"The sales rate is the second highest rate ever, matching December's pace and just below October's record 1.304 million. Economists were expecting a small increase to about 1.14 million, according to a survey conducted by MarketWatch. The supply of new homes on the market rose to a record 444,000, representing a 4.4-month supply at the February sales pace. In January, the inventory had spiked to a 4.6-month supply. Home sales and new construction have remained very robust despite increases in mortgage rates. Sales of existing homes dipped slightly in February to a still-strong 6.79 million annual pace, a realtors group reported on Wednesday. But mortgage rates have risen sharply since February to around 6 percent. Economists for housing and real estate groups say they believe rising incomes and continued appreciation in home values will keep demand strong even as interest rates rise. Others worry that low interest rates and lack of other investment opportunities have fueled a bubble in housing, bringing in speculators to push demand - and prices - higher than justified by fundamentals. The government cautions that its housing data are particularly prone to sampling and other statistical errors.
I put the red flags in bold font for blind people like Economist Steve. But, isn't this (i.e., my remarks) a little like doing you know what against the wind?
Watching media today is like seeing comedy with serious economic and financial data being used as the "straight man". It shows how low some media will stoop in their disregard for the facts " just as long as people are "laughing".
You do know where all this flight to fancy is leading, don't you?
"Thus they provoked Him with their inventions; and the plague broke in upon them" - Ps. 106:29
I have an idea you are not going to like it.
Posted by Posted by Bill Cara on March 24, 2005 10:49:10 AM | Category: Cara Today in the Market