28 June 2011

This is What Qualifies for Good Economic News

The fact that homer prices in May fell year over year, but they rose month to month:
Finally, perhaps some good news on housing values.

On Tuesday, the Standard & Poor’s/Case-Shiller index, a closely watched measure of home prices, posted a rise for April, the first in eight months.

The index increased 0.7 percent, reflecting increases in prices in 13 of the 20 cities tracked. That compared with a 0.8 percent decline in March, when the index hit a new low.

But analysts said it was unclear that a sustained rebound in the housing market was under way, noting that sales were typically stronger in the spring.

David M. Blitzer, the chairman of the index committee at S.& P. Indices, called the April increase a welcome shift from previous months. “However, the seasonally adjusted numbers show that much of the improvement reflects the beginning of the spring-summer home buying season,” he added in a statement. “It is much too early to tell if this is a turning point or simply due to some warmer weather.”
It's the warmer weather, but we have papers trumpeting this because they are desperately trying to pander to your realtors who buy ads in your paper.

The fact that home prices rose a bit in April relative to March isn't news.

Thing about it: The last time home prices rose in the Case-Shiller index was 8 months ago, and 8 months back from April is …… August …… Naah, nothing seasonal here.


DJ said...

What is truly pathetic about all this is, if inflation is taken into account (especially true inflation, not the government laundered version), there is no increase at all.

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