Pending Homes Sales Data Show Prices Headed South

Recent economic reports and the GDP revision to -1% have definitively repudiated any notion that Q1 economic weakness is attributable to the short bouts of frigid weather that hit the northeast and parts of the midwest during Jan/Feb.

With this nonsense out of the way, it is becoming more widely accepted that the housing market is cracking.  Even Janet Yellen acknowledged as much last week.  We got to see more evidence of this with last week’s Pending Home Sales Index report for April, which the National Association of Realtors describes as the best leading indicator for the housing market.

What was reported last week was ugly, especially in the context of April being one of the four or five best months seasonally for home sales.  I wrote an article for Seeking Alpha which was published Friday afternoon:   Pending Home Sales Doom.

In the words of Ayn Rand:   We can ignore reality, but we can’t ignore the consequences of reality.

4 thoughts on “Pending Homes Sales Data Show Prices Headed South

  1. How long do you think it will take for the market to get back to its true price discovery relationship? What do you think the masters of America will do to counteract the housing flame out?

    1. You asking me to predict when the Dow will crash. I don’t want to put a timeframe because the corruption behind the actions taken to push the stock market is far greater and deeper than any of us ever imagined it could be.

      The “masters’ of America are loading up the various agencies with ammo and weapons and Obama apparently made it legal to use military force on Americans. There’s your answer…

  2. It is beyond imagination how they have been able to prolong this. Never in my wildest dreams would I have guessed they could do it but I underestimated them…But it will come and I have had patience this long, in fact I bought another 1000 shares of SRS when it went under 16 last week. Never invest more than you can afford to lose but Im thinking this is a pretty good bet.

  3. Stephanie Pomboy “Confessions of Ben Bernanke”

    “Either they continue to taper and risk having higher rates destroying the economy or continue QE and risk destroying dollar hegemony.
    Those 2 options are why Bernanke decided to pass the baton to Janet Yellen.
    Good luck”

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