Yesterday we reviewed the data on what the National Association of Realtors (NAR) calls "Existing Home Sales" (EHS) as if that number is a current event and an important data point. In fact EHS reports the number of previous sales contracts on existing homes that went to closing in May. Sales that closed in May typically took place in March and April. Sales normally take place from 4 to 12 weeks before the closing. Around 90% +/- of all sales close. The closing is a formality. Why wait for 3 month old data when we have the data for last month.
Home Sales Contracts Set Alarm Bells Ringing
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.