Housing Sales Collapsing
For the fourth month in a row, homes sales dropped in September by nearly 6%, to the lowest level of pending sales of existing homes since December of 2012. Naturally, the media want to try and blame the GOP for a fourth month trend. The LA Times writes that the government shutdown "weighed on sales." Zero Hedge not only proves that isn't true, but points out that this is the biggest drop in almost four years.
The takeaway data from the LA Times story was this:
“Declining housing affordability conditions are likely responsible for the bulk of reduced contract activity,” the Realtors' chief economist Lawrence Yun said in a statement.
We're stuck in this New Deal thinking, that the way to return to prosperity is to make everything -- housing, equities, insurance, food, energy -- more expensive.
Funny how people stuck in part-time jobs can't afford bubble-priced houses.