What is the problem with these two stories from today’s Washington Post ?
First, the Post reports that home prices posted their steepest year-to-year drop between 2007 and 2008 than at any time in the past 20 years:
NEW YORK — U.S. home prices dropped at the sharpest rate in two decades during the first quarter, a closely watched index showed Tuesday, a somber indication that the housing slump continues to deepen.
Standard & Poor’s/Case-Shiller said its national home price index fell 14.1 percent in the first quarter compared with a year earlier, the lowest since its inception in 1988. The quarterly index covers all nine U.S. Census divisions.
The narrower indices also set record declines. The 20-city index tumbled 14.4 percent during the quarter, the lowest since that index was started in 2001. The 10-city index plunged 15.3 percent, a record in its 20-year history.
“There are very few silver linings that one can see in the data. Most of the nation appears to remain on a downward path,” said David Blitzer, chairman of S&P’s index committee
That story was posted at 9:38 this morning on the Post’s website.
About four hours later, we were informed of an “unexpected” increase in home sales last month:
WASHINGTON — Sales of new homes rose in April for the first time in six months although the unexpected increase still left activity near the lowest level in 17 years.
The Commerce Department reported Tuesday that sales of new homes rose 3.3 percent in April to a seasonally adjusted annual rate of 526,000 units.
Hmm, let’s see. Prices are falling and sales are rising.
This is “unexpected” because……. ?
May 27th, 2008 at 4:29 pm
Oo! Oo! I know that one, Mr. Mataconis!
Because the far Lefties who dominate our media don’t understand the law of supply and demand, or any other economic principle of the free market?
May 27th, 2008 at 4:35 pm
A gold star for the gentleman.
Media ? Understand economics ?
They can’t even understand why the idea of dropping a brick of dead trees on my door step every Sunday is a really stupid idea.
May 27th, 2008 at 10:08 pm
Hey, my degree is in law, not economics, but even I know a little bit about it.