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What Bubble: Average New Home Sale Price Rises To All Time High

Tyler Durden's picture





 

All one can say following the latest New Home Sales data release is that "baffle with BS" mode is fully engaged. First, following the release of the "revised" seasonally adjusted New Home Sales data, we learned that homebuilders somehow sold an extra 88 thousand annualized homes in the months of September, October and November: the same months when the sellside and economist crew was screaming home sales would plunge due to the government shutdown...  just so there is a buffer when sales dropped and/or disappointed (because apparently nobody buys houses when the government isn't around). Instead what happened was a massive 18% jump in New Home Sales in the month of October, when the US government was shut down for over half the month, and the final print was 474K sales, the highest since July 2007. So much for that particular red herring.

 

But where things get outright bizarre, is when one looks at the series showing the average sales price for New Homes. Keep in mind that an hour ago we showed that mortgage applications have tumbled to a fresh 13 year low, while refi apps slid to the lowest in 5 years. So what happened to the average new home sales price in the month of November? Well, it just hit a new all time high! Why, because why it can.

And... #Ref!

 


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Tue, 12/24/2013 - 11:40 | Link to Comment EscapeKey
EscapeKey's picture

Mission accomplished.

[Insert obligatory picture of Bush here]

Tue, 12/24/2013 - 11:50 | Link to Comment Obchelli
Obchelli's picture

Meantime 10 year is creeping up towards 3%

Tue, 12/24/2013 - 11:55 | Link to Comment synergize
synergize's picture

Makes sense though - the middle-class cant afford to buy houses anymore and arent (thus the drop in mortgage applications) but the rich can still buy (thus the increase in avg price).

The middle class is being destroyed and thats what the data is showing...

Tue, 12/24/2013 - 12:09 | Link to Comment youngman
youngman's picture

This is more the 1 Percent buying their NYC mansion apartments..while the rest of us cant afford one....skewing the number....you are not building tract homes in Vegas anymore....or in Brighton Colorado either...but a new highrise in Manhatten is a good bet

Tue, 12/24/2013 - 12:27 | Link to Comment Chris Jusset
Chris Jusset's picture

Never before has there been such a concerted, determined effort to reflate a bubble than the Fed's and US Government's effort to reflate Housing Bubble 2.0.  As a bonus, they've also reflated the stock market bubble, and blown countless new bubbles in other speculative assets.

Congrats in accomplishing your goal!

Tue, 12/24/2013 - 13:19 | Link to Comment CheapBastard
CheapBastard's picture

The 0.00001% savings yield is pushing people to do some strange [aka, crazy] stuff.

Tue, 12/24/2013 - 14:18 | Link to Comment IREN Colorado
IREN Colorado's picture

I keep hearing a ticking sound somewhere behind US....

Tue, 12/24/2013 - 12:13 | Link to Comment IPA
IPA's picture

Anecdotally, there are many people who can't afford to sell their homes, 10% cost to sell on a 400k home is too much money. I think real-estate is going to go through some changes.

Tue, 12/24/2013 - 13:12 | Link to Comment Handful of Dust
Handful of Dust's picture

IPA is right. Most buyers are so excited/b lind they forget the average American moves every 4-5 years for jobs, family, etc and they have to fork out 10% in sales costs [at least]. Since most buyers put 3.5% down [or less] they are in a hole from the start.

 

 

Tue, 12/24/2013 - 18:24 | Link to Comment mumbo_jumbo
mumbo_jumbo's picture

that's bullshit,...... in 22 years of following California real-estate (the house i bought in 1991 was upside down for 9 years and the house the X bought was only "up" for 2) i've only seen 4-5 years of NOT being upside down.....AND my parents have been in the same house for 40 years.

i suggest you turn OFF the TV.

Tue, 12/24/2013 - 14:59 | Link to Comment SDShack
SDShack's picture

McMansions being replaced by McCastles... kind of like the new White Castle for the New Feudal Masters.

Tue, 12/24/2013 - 18:15 | Link to Comment mumbo_jumbo
mumbo_jumbo's picture

i must agree with you, there is no fucking way i can afford a $500K starter home in a decent area in "el norte"

Tue, 12/24/2013 - 12:12 | Link to Comment smlbizman
smlbizman's picture
'Anti-Propaganda' Ban Repealed, Freeing State Dept. To Direct Its Broadcasting Arm At American Citizens ttps://www.techdirt.com/articles/20130715/11210223804/anti-propaganda-ban-repea...
Tue, 12/24/2013 - 13:18 | Link to Comment Nostradumbass
Nostradumbass's picture

Interesting link and info. Thanks.

Now... just don't tune in to the BS...

Tue, 12/24/2013 - 13:53 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

I guess they must be anticipating the failure of NBC, CBS, CNN, and ABC. Considering how well those arms of the CIA have been doing their job at the propaganda game, there has been no need for a redundant effort from the State dept.

Tue, 12/24/2013 - 13:03 | Link to Comment ZH Snob
ZH Snob's picture

more foreclosure fodder for the banks.  after the next bubble burst or collapse they can go in and grab it back, sell at auction to the shell investment companies they own then turn around and rent it back to people for more than the mortgage used to be.  why wait around 30 years for peanuts in amoritization when you can simply steal it?

Tue, 12/24/2013 - 15:04 | Link to Comment SDShack
SDShack's picture

And they won't wait 3-5 years for the foreclosure process next time either. They learned from their robo-signing mistake and have fixed it for next time. This time the conversion to rentals will be Fast & Furious to "save" the people from being "thrown into the streets". They'll take the property and force you into a rental slum for your "protection". Those that can't afford their slum will be relocated to a FEMA camp. The new Potter Land. Just watch.

Tue, 12/24/2013 - 11:39 | Link to Comment SelfGov
SelfGov's picture

How nobody links this with the rising oil production in the US is beyond me. US is going to peak again real soon and that will be the end of the petrodollar. :)

Tue, 12/24/2013 - 13:27 | Link to Comment Frank N. Beans
Frank N. Beans's picture

please explain

Tue, 12/24/2013 - 11:40 | Link to Comment Bearwagon
Bearwagon's picture

To anyone who still is mad/sane enough to listen to a bearish statement: Watch out below!  ;-)

Tue, 12/24/2013 - 11:52 | Link to Comment pkea
pkea's picture

New homes are the new gold...
But seriously I guess most of the buyers are cash buyers or with serious down payment....thanks to the market run and qe

At least these people feel that they can enjoy their fiat in more real form

Money are illusion after all:)

Tue, 12/24/2013 - 11:45 | Link to Comment AccreditedEYE
AccreditedEYE's picture

This is the new world we are livin' in. People convinced rising home prices still good for economy. People unaware that when HF's & PE own so much RE, it's an artificial subsidy to the price. Not only does it lock a new form of price volatility into the asset class, it also prices out the next generation. Sad in itself, but keep in mind this is a bigger issue than face value: No tax deductions, no ability to build long term wealth thru a forced savings + perhaps even more important, but way harder to measure, no feeling of community + responsibility that goes along with home ownership. More offshoots of a Federal Reserve gone wild.

Tue, 12/24/2013 - 11:48 | Link to Comment zek
zek's picture

God bless Obama. Under his leadership US has turned the ship around. You Amercans are so lucky to have such a great commader in chief. now the whole world can breathe the sigh of relief... the desaster has been averted. God Bless America. God Bless Bernanke.

Tue, 12/24/2013 - 11:55 | Link to Comment yogibear
yogibear's picture

Sure, Obama the messiah (sarc). Bow down to the anointed one.

Tue, 12/24/2013 - 11:47 | Link to Comment tarsubil
tarsubil's picture

Only the rich have money and they are the only ones building homes so of course the price of new homes is going to go up. Duh.

Tue, 12/24/2013 - 11:52 | Link to Comment Hal n back
Hal n back's picture

tarsubil-agree completely

 

its not just building new, its resales in the sweet spot.not too hi not too low in prices

 

there are too many metrics issued too often that we cannot rely on.

 

 

 

 

Tue, 12/24/2013 - 11:51 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Why buy used when you can buy new for the same price or less?

<This distortion can only exist in a severely manipulated economy.>

Tue, 12/24/2013 - 13:16 | Link to Comment Handful of Dust
Handful of Dust's picture

The 'new houses' are built so fast and many with crappy material they start to fall apart at the 5 year mark my general contractor neighbor tells me.

Be careful!

Tue, 12/24/2013 - 11:50 | Link to Comment philosophers bone
philosophers bone's picture

I hate Blackrock now. Amazing that marketers do not know where to draw the line and end up hurting their brand more than helping.

Tue, 12/24/2013 - 12:15 | Link to Comment Shizzmoney
Shizzmoney's picture

Blackrock will be Lehman in the next 10 years, maybe even sooner.

I see their ads more and more, hell they just even sponsored a god damned college college basketball game. 

Usually a sign they are getting big enough to fail magnificently.

Tue, 12/24/2013 - 12:27 | Link to Comment max2205
max2205's picture

I wish mine was where the guy I bought from bought at.... in the DC area too....quick I better check Zillow and sell!    Still off at least 20% from brand new price.

Tue, 12/24/2013 - 11:52 | Link to Comment haskelslocal
haskelslocal's picture

It actually makes sense: 

Non-transitory populus mostly unwilling to move.

Baby-boomer lock down.

Nesting.

Mortgage scandal settlements leading to end of foreclouse debacle.

Bank owned inventory hoarding.

Ghost building by the majors.

They've ripped this page from the DeBeers playbook.

Get your inventory on the cheap, lock it down and hoard it, market it as a "necessity" and sell it at a premium.  

Tue, 12/24/2013 - 12:14 | Link to Comment alien-IQ
alien-IQ's picture

"sell it at a premium"

To who? Each other? The tooth fairy?

Tue, 12/24/2013 - 15:09 | Link to Comment SDShack
SDShack's picture

They don't intend to sell it, only "keep it in the family". The middle class home is becoming the middle class cell for the serfs. Those that the new Feudal Kings need will get the best properties... just like the Lords of old. The pecking order goes down from there. Those that can't even qualify as a serf will be relocated to the FEMA camps known as Potter Land.

Tue, 12/24/2013 - 16:01 | Link to Comment Clowns on Acid
Clowns on Acid's picture

located right next to Potter's field.

Tue, 12/24/2013 - 15:57 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Blood diamonds - first DeBeers tried to buy them up to keep off of market, then they found it was more profitable to ban them.

Blackrock and the like need moar illegal immigrants to become legal, then obtain affirmatice action mortgages for them, then Blackrock's "investment" becomes quite profitable.    

Tue, 12/24/2013 - 11:55 | Link to Comment markar
markar's picture

The median sales price of a home here in the Palm Springs area has jumped 80% in a year despite sales down over 20%. The builders that have tiptoed back in the market know the investors have taken up all the low priced inventory (under $300K) and aren't selling anything much under $400K.

Tue, 12/24/2013 - 11:54 | Link to Comment Dingleberry
Dingleberry's picture

Print it....and they will come

Tue, 12/24/2013 - 11:58 | Link to Comment Yen Cross
Yen Cross's picture

      Let's all pile into the R/E market. US 10Y   [ 2.970 ]   2.929    2.972    2.922    0.041    1.40%    15:55:19  <sarc>

Tue, 12/24/2013 - 12:05 | Link to Comment El Hosel
El Hosel's picture

 Greenspan said, its not a bubble... and if it is a bubble, it is contained, and islolated. 

Tue, 12/24/2013 - 16:25 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Here's a real bargain for you to invest in: http://www.redfin.com/CA/San-Diego/4873-Del-Monte-Ave-92107/home/5332060.

To summarize: Crappy neighborhood, high crime, 1400 sq. ft. on a teensy little lot offered at only $1,195,000.

Borrow now, invest now, get rich soon.

 

Tue, 12/24/2013 - 12:07 | Link to Comment bugs_
bugs_'s picture

Nasdaq is heading for 5k.  21.6% more to go before the all time high is eclipsed.

Tue, 12/24/2013 - 12:16 | Link to Comment Laughing Stock
Laughing Stock's picture

Agree 100%

It's a slam dunk at some point this year

Tue, 12/24/2013 - 12:07 | Link to Comment alien-IQ
alien-IQ's picture

American Feudalism.

Tue, 12/24/2013 - 15:11 | Link to Comment SDShack
SDShack's picture

Sounds like a good AMC script. After a few years it will be "American Feudalism Meets The Walking Dead".

Tue, 12/24/2013 - 12:09 | Link to Comment tawdzilla
tawdzilla's picture

In my neck of the woods, homebuilders have managed to convince the cities to increase the density of the projects (i.e. make the homes smaller and lot size smaller.)  The home builder wins, because they can continue selling these new cracker jack box homes cheaper than existing homes, the city wins because they can increase their tax rolls, but the consumer loses because are once again paying more for less.

This is basically the same concept as reducing the size of the potato chip bag, while charging the same amount of money...or more. 

 

 

Tue, 12/24/2013 - 12:20 | Link to Comment Laughing Stock
Laughing Stock's picture

Here in the NY tri-state area they are back to tearing down houses left and right and replacing them with McMasions

They can't build them fast enough...buy for $500K, tear-down, build new 4,000 sq footer, sell for $1.2 million

Wash, rinse, repeat

Buyers: pretty much any one in the medical industry, finance douches, and scum-bag state employed unions fukers (read: overpaid cops & administrators)

Tue, 12/24/2013 - 19:54 | Link to Comment mrdenis
mrdenis's picture

What county do you live i'm in Monmouth .....

Tue, 12/24/2013 - 23:39 | Link to Comment goldinpenguin
goldinpenguin's picture

I live in Spring Lake and teardowns used to fetch 750K and a nice new home would go on mkt for about 1.5M, I was shocked to see a 900K teardown go on the mkt for 2.2M, doesn't mean the builder will actually get 2.2M but thats a hefty jump over the 1.5M price level for new homes in the same block.900K is still off 2005/6 peak when every home, including lots of teardowns, sold over $1M but there definitely seems to be a squeeze on for buildable lots.

Busybody neighbors used to bitch about beautiful old homes being torn down in 2005/6 era, nobody is bitchin now

Tue, 12/24/2013 - 13:26 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

The mayor here who, of course, had big money support during his campaign is a developer and the stupid sheep voted for him. Sheesh...

"Some rich men came and raped the land, 
Nobody caught 'em 
Put up a bunch of ugly boxes, and Jesus, 
people bought 'em"

Tue, 12/24/2013 - 12:10 | Link to Comment JustObserving
JustObserving's picture

If TWTR and FB can rise 50% a month, why cannot home prices?  Suspend all disbelief and watch the Fed conjure up prosperity.  Don't blame them if they do it exclusively for their bankster buddies.  Some prosperity may trickle down if you if you wish hard enough and click your ruby slippers.

Tue, 12/24/2013 - 12:16 | Link to Comment CWulf
CWulf's picture

Why?

Because only people with lots of freshly printed curerency are paying up for real estate.

I bet the latest LTV is at a record as well

Tue, 12/24/2013 - 12:14 | Link to Comment Shizzmoney
Shizzmoney's picture

I really hope the DOW and S&P rises to infinity (and makes some of my trader buddies money in the process). 

That way when it falls, the audible of the LOL out of my mouth will also rise to the level of infinity.

Tue, 12/24/2013 - 12:22 | Link to Comment Obamananke
Obamananke's picture

Have been a contractor for thirty years. I believe increase in price is due to inflation. Most materials used in a new home continually increase which obviously gets passed down to sell price. For instance Andersen  windows just increased all products 4-6% for year 2014 . Our profit margins are not increasing same rate as new home prices are. The disparity between a new home and used home has never been greater somethings gotta give. Wish I could afford a 17 day Hawaian vacation.

Tue, 12/24/2013 - 13:27 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

Not all of it or even a large percentage of it where I live. I think that here it's due to pent-up demand from those who foolishly believe the crisis is over and institutional buyers buying up rental properties.

Tue, 12/24/2013 - 12:25 | Link to Comment GrinandBearit
GrinandBearit's picture

Just how many rich Chinese, all cash, earn a free green card buyers are out there?

Lots and lots evidently.

Tue, 12/24/2013 - 15:11 | Link to Comment SDShack
SDShack's picture

The Japanese thought the same way in the 80's. That didn't work out too good for them.

Tue, 12/24/2013 - 12:25 | Link to Comment corporatewhore
corporatewhore's picture

i was following a "homepath" property that couldn't sell for $150,000 back in July.  Bank foreclosed, sat on it for a few months and listed it for $210,000.  some idiot bought it after their real estate agent convinced them it was a lifetime opportunity.  i am still speechless that the fools never did any research on the property and relied on the "honesty" of the agent.

Tue, 12/24/2013 - 12:30 | Link to Comment Save_America1st
Tue, 12/24/2013 - 13:59 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

3.00 is still the "line of death", right?

 

Tue, 12/24/2013 - 13:09 | Link to Comment evernewecon
evernewecon's picture

 

 

 

 

 

 

Manipulated inventory (at great expense

to everyone else: real neg returns/savings,

paying for loss sharing when really those

who put 5%/10% down should have non-recourse

and the lenders should have skin in the game)

and an index that purportedly weighs more

post crash round turn purchase and sale.

 

 

http://pages.citebite.com/d1i8e3n1t3rpv

 

 

http://pages.citebite.com/o2c0d2e1j0mlb

 

Some who SOLD the bubble chased 

Icelandic Krone till they realized 

the carry trade was really siphoning

from Japan's recovery to kite a 

scheme of marketing in mislabeled

tranches securities based on 

unqualified borrowers.

 

Others chased gold realizing that

the Fed's policy of purchasing the 

banks' mortgage bubble would have

to transfer the inflation somewhere

(the Fed wasn't paying market prices,

after all.  The market had nothing to

do with it.)

 

I personally know of a widow who

couldn't see her way to receiving

<1% returns on her safe money from

the house she sold upon her husband's

death for very many years, and so let

herself get talked into elements of 

the casino economy.   

 

She progressively lost parts of those

proceeds and now has frozen them

finally in a safe money account, 

accepting that <1% and simply waiting

out the charade.

 

Those who SOLD could've cleared the

market long ago.

 

 

This

 

http://www.businessinsider.com.au//national-foreclosures-decline-in-janu...

 

 

is reasonable and desirable where 

foreclosures are wanton in legal 

process, but banks otherwise should

have skin in the game and the borrowers

should not be tied to their debt 

forever.

 

(Actually, Jurow's talked about a

"mortgage release program" that would

open the floodgates of foreclosures,

but that could only proceed to the 

extent the Fed shields the banks

from losses, and, maintaining the 

illusion of recovery appears being

a genuine objective.)

 

 

 

 

http://www.multiurl.com/la/Yearend_2013_Real_Estate_Artificial_Bubble_Bu...

 

 

 

http://www.multiurl.com/ga/8_6_13_Evidence_Of_Illusion_4_Propping_Last_B...

 

 

 

http://www.multiurl.com/la/Key_Elements_Of_Real_Estate_Market_Illusion

 

 

 

http://www.multiurl.com/la/Self_Defeating_And_Profitable_Adversity_Creat...

 

 

 

When rates blipped up in May:

 

 

 

http://www.zerohedge.com/news/2013-05-29/cash-and-tarry-mortgage-applica...

 

 

 

http://www.zerohedge.com/news/2013-12-07/luxury-home-foreclosures-soar-%...

 

 

 

http://pages.citebite.com/a2v3i7h8x1epk

 

 

 

http://www.cnbc.com/id/101215003

 

 

 

http://www.zerohedge.com/news/2013-11-26/realtytrac-institutional-invest...

 

 

 

http://video.cnbc.com/gallery/?play=1&video=3000220508

 

@:32, "We Hit A Wall, We Hit

 

 A Wall Last Month And Sales 

 

Stopped In This Country And I'd 

 

Like To Know Whether You're

 

 (Robert Shiller) Seeing Anything

 

Ahead Of These Numbers Which

 

 Indicate The Incredible Decline 

 

In Transactions That Has 

 

Occurred During The Month

 

Of October." 

 

Jim Cramer, CNBC, 11/26/2013

 

 

 

 

 

http://www.caltech.edu/content/what-causes-some-participate-bubble-markets

 

 

 

http://www.doctorhousingbubble.com/california-housing-affordability-one-...

 

 

 

 

 

http://video.cnbc.com/gallery/?play=1&video=3000221314

 

Paying the banks to hold inventory

 

 

 

 

 

http://www.cnbc.com/id/101217831

 

Diana Olick, CNBC, 

 

11/22/2013

 

 

 

11 Million (Cites Zillow) 

 

Underwater Must Sell-Underwater 

 

Amount "Gap Insurance" Now 

 

Available, But Critics Say Don't Be

 

Afraid And Instead Put The Money

 

Regularly Into Self-Insuring

 

(Paying Down Principal.)

 

 

 

NOTE:

 

Zillow's Estimate Is Based On 

 

Their Selection Of Indices And

 

Comp's.

 

 

 

(But see the Jurow / Ritholtz 

 

at the top of this comment to

 

see why Zillow's estimate may

 

be regarded by some such as

 

myself as being too low.)

 

 

 

http://www.zerohedge.com/news/2013-11-20/home-sales-plunge-fastest-rate-...

 

 

 

 

 

 

 

 

 

 

 

 

Tue, 12/24/2013 - 13:25 | Link to Comment Nostradumbass
Nostradumbass's picture

Down arrow for your TMI post.

Tue, 12/24/2013 - 13:35 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

When using cut and paste, always preview your post. If it looks like yours, paste it into something like Notepad to remove HTML or other formatting, then cut and paste it from there.

Tue, 12/24/2013 - 13:11 | Link to Comment corporatewhore
corporatewhore's picture

i thought i was reading haiku

Tue, 12/24/2013 - 13:27 | Link to Comment IREN Colorado
IREN Colorado's picture

Big Bubbles. Big, Big, Bubbles....

In the 1990's the FHA financing was dead. It was cheaper and easier to finance through private lenders and use private mortgage insurance than it was to use those soon to be bubblin' blowers: Fannie Mae, and Freddie Mac. Mortgage underwriting was a system that worked. People who didn't qualify didn't get to buy. People who did paid market interest rates (historically around 6-7%). The Gub'ment stepped in and over rode the solid business practices of private industry and replaced it with cheaper, easy to use newly nationalized mortgages brought to you by the Lawrence Welks of the Mortgage Industry (omage to champaigne bubbles here, clever?).

We've been blowing bubbles ever since. Fannie Mae and Freddie Mac are now holding foreclosed homes and leasing them to their section 8 clients while trying to keep the bubbles ever so inflated. 

This will not end well. Pray for the Republic.

Tue, 12/24/2013 - 13:39 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

The fix: 20% down with income, assets checks and mortgage issuer holds it to maturity. Problem solved the "old fashioned" way that WORKED due to proper vetting incentives for the lender and proof of an ability to hold a job and manage finances by the borrower.

Tue, 12/24/2013 - 14:12 | Link to Comment IREN Colorado
IREN Colorado's picture

You don't really need 20% down to keep the risks reasonable. You just need sound underwriting practices and Mortgage Insurance that is issued at market prices. In the bad old days if a lender's portfolio held too many risky loans the industry would self regulate it back into compliance.

Today, Fannie and Freddie underwrite to achieve political goals. The net result is that private industry has been corupted into a shill for the Feds (kinda like health care under obama/romney cares?). The "administraton", who ever that is on any given election cycle, controls where you live, what you'll pay for it, and what you get to buy. Very East European don't you think?

Teach economics to your children!

Merry Christmas!

 

Tue, 12/24/2013 - 14:15 | Link to Comment tony bonn
tony bonn's picture

the point of this article is statistical bullshit - a very cheap trick. on the other hand, if this represents a trend with high positive correlation with time, the explanation is quite simple....with fewer and fewer people able to afford a home, the remaining buyers are closer and closer to the apex of the economic pyramid....

the average of 0,0,0,0,0,0,0,0,0,1000000 is 100000.

in other words, only the 1% can afford homes and they are not going to buy a cheapass 500k dump.....the lower end of the market disappears and 500k becomes the new low end. what remains is a higher average home price.....same reason sat scores plunge....so many people have been duped into the college racket that sat are diluted whereas compared to 1940 the scores have plummeted....but what does that mean? that americans are dumber and education has failed?

no - it only means you need to look at the composition of the sample population or the whole thing if you like. of course usa education is a nazi enterprise catering to imbecility, but that cannot be proven by sat scores.

Tue, 12/24/2013 - 14:43 | Link to Comment Gusher
Gusher's picture

Obamananke nailed it:  

......"Have been a contractor for thirty years. I believe increase in price is due to inflation. Most materials used in a new home continually increase which obviously gets passed down to sell price. For instance Andersen  windows just increased all products 4-6% for year 2014 . Our profit margins are not increasing same rate as new home prices are. The disparity between a new home and used home has never been greater somethings gotta give. Wish I could afford a 17 day Hawaian vacation".   I had to read a lot or outlandish comments before I found Obamanke's, which to me seemed obvious.  You want a new house, you have to pay the price.  And the fact that so few new houses are being built, is just more testament to how our standard of living is dropping like a rock.
Tue, 12/24/2013 - 14:41 | Link to Comment Gusher
Gusher's picture

Obamananke nailed it:  

......"Have been a contractor for thirty years. I believe increase in price is due to inflation. Most materials used in a new home continually increase which obviously gets passed down to sell price. For instance Andersen  windows just increased all products 4-6% for year 2014 . Our profit margins are not increasing same rate as new home prices are. The disparity between a new home and used home has never been greater somethings gotta give. Wish I could afford a 17 day Hawaian vacation".   I had to read a lot or outlandish comments before I found Obamanke's, which to me seemed obvious.  You want a new house, you have to pay the price.  And the fact that so few new houses are being built, is just more testament to how our standard of living is dropping like a rock.
Tue, 12/24/2013 - 16:05 | Link to Comment Kasperfx
Kasperfx's picture

my neighborhoods homes values increased 10% over the past 2 months on zillow!!!, Yet there's still 5 to 6 incompleted stoped months ageo  "weeds all over the dirt monts" constructions sites, 4 unsold " for the past 6 to 8 months" public foreclosures and a hand full of homes "for sale that have not sold even after a good reductions in their prices. WTF why would zillow show an increase when nothing selling nor getting completed. this is crazzzzzzy town numbers. 

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