Housing Recovery and Confused MSM Journalists

Existing-home sales drop, but prices rise – Economy Watch.

Existing home sales dropped but the median sale price rose nicely 7.9%. The journalist calls these results “mixed signals.” They are not mixed signals. The theory in the article is that distressed homes were only 25% of the total, and this drove the increase in the median sale price.

Here is my alternate take. Working class people are bearing the brunt of this “recovery,” and they comprise the market for the cheaper homes. They are increasingly abandoning the market, so the cheaper homes are not selling. The median is rising because the bottom is leaving the market. This decay will creep into the higher reaches of the market eventually.

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