Blog To Experts: It's A Bubble
New home sales are out and the analysts have it wrong again. "Consumer confidence declined in April for the third consecutive month, signaling Americans' concerns that economic growth is leveling off.The government said sales of new homes shot up 12.2 percent last month to the highest level in history"
"The Commerce Department said new single-family homes were sold at a seasonally adjusted annual rate of 1.43 million units in March, confounding the consensus forecast of a small decline in sales in March. Sales of both new and existing homes have set new records for four straight years, but analysts are expecting demand to cool off a bit."
With a worried consumer and a soft economy, the experts can't understand why sales haven't slowed down. That's because they refuse to see it's a bubble! People act irrationally in a financial mania and that is what we have.
This from MarketWatch, "The median price of a new sold home fell 9.3% month-over-month in March to $212,300." Some discounting going on?