By Guest Contributor: Deltalect
According to the US Department of Housing, the seasonally adjusted annual rate of new houses sold for the month of May was 267,000. A record low. The lowest number since data collection started in 1963. Our REAL GDP (using 2005 dollars) is now OVER 4 TIMES what it was in 1963 and we now have over 60% MORE people living in the US …. Yet annualized new home sales rate in May 2010 was HALF what it was in 1963.
The headline “New home sales up 24%” still makes June the worst June on record, and still is almost 25% below the previous record low.
Let me put this another way. The 24% increase in sales since May represents a mere 63,000 homes; a number which is small enough to have been rounded away in 2005 when the rate was 1,283,000 and the press reported “1.3 million” NYTimes.
The number for May has been revised down since its initial posting by the US Department of housing. Furthermore, April was revised downward TWICE since it’s debut. What do you think the likelihood is of the June number seeing downward revision within the next few months?
This is just the headline information, the “easy” stuff. New home prices are down 1.4% and the stated supply is still over 7.5 months … and that doesn’t account for shadow inventory (Look at the number of houses for sale or empty on your street, then try and find them on Zillow).
So how would you expect this information to be presented to you by the media? How would you want it presented?
Can you spot the canaries in the coal mine?
ABC News: “Home Sales Surge in June”
AOLNews: “The June Jump in New-Home Sales Is Welcome — but Hardly Robust”
AP: “New home sales in June tick up slightly, but sales remain low as demand for housing slumps”
BBC: “US new home sales still sluggish”
CalculatedRiskBlog.com : “New Home Sales: Worst June on Record“
CBSNews: “New Home Sales Up 24%, But Sales Remain Slow”
CNNMoney: “New home sales rebound 24%”
DailyFinance: “The June Jump in New-Home Sales Is Welcome — but Hardly Robust”
FoxNews : “Home Sales Report: June Was Jumpin’, Growth Still Slumpin'”
FinancialTimes: “US new home sales rebound in June”
LATimes: “New homes sales up in June but still anemic”
MSNBC: “New home sales up, but sales remain slow”
NYTimes: “In U.S., New Home Sales Rise but Pace Lags”
Reuters: “Home sales surge in June”
USAToday: “New-home sales up, but sales remain slow”
WashingtonPost: “Stocks edge higher as home sales rise”
Yahoo: “New home sales up, but sales remain slow”
ZeroHedge: “Atrocious New Homes Sales Data Sufficient To Force Another Algo Mediated Short Covering Frenzy
Regarding the “official” media:
The mass media sounds like a pillow-soft, demented lullaby from a parent who really only wants you to fall asleep so that they can set the house on fire and then write some sensational and entertaining copy about it; copy you won’t be reading. Lately I have been going to MSNBC.com to read the comments that follow the articles. Out of a hundred responses you might find two that attempt to alert the readers to what’s actually going on. When that happens, the rest of those commenting jump of them with the usual tin foil hat, conspiracy theory, nut job tags. It’s proof positive that the majority of people will defend those oppressing them as if the news were actually the news instead of manufactured horseshit woven into crowd control medleys of the kind of elevator music that was probably playing in the Twin Towers on 9/11. (Source)