After fifty-eight months since the end of the Great Recession, home sales have clawed their way back to 2012 levels.
This has mainstream media outlets like Reuters indicating that Janet Yellen and the Federal Reserve may want to continue to keep interest rates low. In other words, what hasn’t worked to spur economic growth, job creation, and home sales, should be repeated. Groundhog Day.
The National Association of Realtors reported that existing home sales in March remained flat from February at a pace of 4,040,000, but down 7.3% from March of 2013. The median sale price was up 7.4% from March of 2013 to $198,200.
The news for the new home sales was even worse. New home sales dropped 14.5% in March to a rate of 384,000. The median sale price rose 12.6% from March of last year to a record $290,000.
Let’s put these reports in perspective, shall we? The 4,040,000 existing home sales compare to pre-recession, pre-QE, pre-lowest manipulated interest rates ever, with a normal market 6,000,000 annual home sales.
The new home sales pace at 384,000 is simply pathetic. 700,000 is the bare minimum to maintain a healthy construction industry. NAR spokesman Maloney said a 1,000,000 to 1,500,000 pace should be expected this time of year.
The report of a recovery has been greatly exaggerated by the left wing extremists running our government to hide their dismal policy failures, and by their breathless sycophants in the media. The reasons given for the non-recovery recovery are predictable.