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Tuesday, August 24, 2010

Addition by Subtraction

As expected, existing homes sales utterly collapsed in July post tax-credit. Barry over at The Big Picture detailed comments from the National Association of Realtors:

Everyone knew that Existing Home Sales were going to stink the joint up today — but I just had to laugh when I read the NAR commentary; The headline along was priceless: July Existing-Home Sales Fall as Expected but Prices Rise. Too bad they don’t cover other events: “Lincoln attends theater opening; leaves early with headache.”

They are the world’s most awesome/awful cheerleaders on the planet.

The real reason for the "rise" in home prices in July? A larger collapse in lower priced homes where the tax credit had a larger impact.



Nothing but "addition by the reduction of subtraction".

Source: Realtor