August is usually a quiet time of the year for newspapers and magazines and so the latest housing figures in the USA received wider attention than they usually do. Judging by the way the headlines were complied however, it would seem summer silliness isn´t quite over yet.
Consider the headlines from last week:- “US Home Sales Dropped to a 10 year low” (BBC)
- “US Homes drop to their lowest pace in 15 years” (Irish Times)
- “Sales of US Homes drop to record low” (Businessweek)
Hmmm, well no, it´s never that simple with these numbers unfortunately. If you looked for similar stories within these same reputable news organizations 4 weeks ago, you would have noticed an interesting contrast…
- “Sharp jump in US housing sales” (BBC)
- “Positive US Housing data lifts investor confidence” (Irish Times)
- “Sales of foreclosed homes are up nationwide” (Businessweek)
The above headlines might seem nonsensical when put beside each other, but the reason these respected organizations are giving US housing a big thumbs up in one month and a big thumbs down just a few short weeks later is easy to explain. They are looking at housing trends over a period of weeks rather than months or years. In addition to that, the last few weeks have been particuraly volitile because homebuyers were rushing to meet a government imposed deadline.
View our next blog if you´d like to read more on this subject.
Regards
Colin
