MarketWatch published a market report two days ago about an increase in sales in the housing market. Have we hit the bottom so soon? What I found most interesting were the comments at the bottom. The experts in the peanut gallery tend to disagree.
Author Rex Nutting reported on word from the National Association of Realtors. “Sales of single-family homes rose 2.8% in February to 4.47 million, the second increase in a row and the fastest sales pace since August,†wrote Nutting. He quoted Joel Naroff, president of Naroff Economic Advisers who said “”We seem to be finding a bottom in home sales even as prices keep falling.” One user commented “It’s all about spin baby, thats all it is.â€
While the increase in sales and the decrease in homes on the market is a good sign, it’s interesting that 175 comments in one accord sang disgust. Usually commentators tend to argue one with another, some with the proceeding article, some against. Not this time. Are we being overly pessimistic when we doubt reports from the National Association of Realtors? What possible benefit do they have in tweaking the truth? It will be telling when other organizations follow up with their own studies.
Commentators often toted the ridiculous appreciation rates of homes compared to inflation from the last couple of years. They noted that it was bound to crash. Many laughed at American’s tendency to buy much more than they can afford, trying to “keep up with the Jones’.†I think the best approach was from an “economist for Wachovia†who did so with “cautious optimism.â€
