Monday, April 25, 2005

Home Price Increase Not Sign Of Econ. Strength

The Mercury News may have todays' report upside-down. "Strong home sales ease inflation fears" was the title. "A surprising rise in home sales restored investors' confidence in the economy and eased fears of inflation and higher interest rates."

Highly valued home prices rise even more and that is less inflationary? And if you listen to this guy, you would think rates are even more likely to be raised due to the increase. Maybe the writer is on loan from the style section. "The benevolent Michele Chandler is filling in for the waggish Jon Ann Steinmetz."

3 Comments:

At 7:20 PM, Anonymous Anonymous said...

I rarely read something as stupid. So the economy is good and there is NO inflation because a lot of houses are being sold. So it's the same reasoning as with the NASDAQ bubble. Prices go up because of confidence, and confidence goes up becaus prices move up. What a bunch of morons. A perfect definition of momentum investing but this time applied to real estate. Makes you wonder what these poeple really know about anything. The press are as stupid as the Federal Reserve bankers.

 
At 8:56 PM, Anonymous jl said...

The benevolent Michele Chandler is filling in for the waggish Jon Ann Steinmetz.

May be some intern was filling in for the staff writer ...

 
At 6:56 AM, Blogger deb said...

When a BROKER affiliated company admits there's a problem....


"A first-quarter 2005 report released by Prudential Real Estate Investors, a part of Prudential Financial, though, expresses some serious caution about the condo boom. "The potential fallout from a meltdown in the condo market is unquestionably one of the biggest risks facing the real estate industry," the report states. "While we believe the excesses are fairly concentrated within a few markets, the effects of a shock would reverberate throughout the industry."

From the following Inman article:
http://inman.com/inmannews.aspx?ID=45898

 

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