This page has been archived and commenting is disabled.

Explaining The Horrendous Home Sales Report: It Snowed Everywhere But In The Northeast

Tyler Durden's picture




 

This is our best attempt at playing clueless propaganda cheerleaders also known as economists:

Q. Why did new home sales crash in all regions except the traditionally coldest, wettest, and snowiest Northeast, where sales rose?

A. Uhm, because it obviously snowed everywhere except in the Northeast.

And there you have it: spin 101 for braindead zombies and vacuum tubes.

 

And for those confused about the current state of the "housing recovery", here is a longer-term chat:

Source: Bullshit Bureau

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 04/23/2014 - 10:21 | 4686361 Max Damage
Max Damage's picture

Have they BTFD dip yet the thieving bastards?

Wed, 04/23/2014 - 10:32 | 4686407 insanelysane
insanelysane's picture

The Northeastern states are controlled by a certain political party that needed at least one glimmer of hope and the numbers were fudged accordingly.

Wed, 04/23/2014 - 10:40 | 4686433 Max Damage
Max Damage's picture

From Yahoo

"The housing market has been slammed by an unusually cold winter, higher mortgage interest rates and a shortage of properties that is limiting options for potential buyers"

Nothing more to say...............

Wed, 04/23/2014 - 10:53 | 4686474 Bernoulli
Bernoulli's picture

That's a good one... Maybe that's also why gold and silver are down. "shortage of physical limiting the options for potential buyers"! Now it all finally makes sense!

 

Wed, 04/23/2014 - 11:45 | 4686722 mickeyman
mickeyman's picture

No, the snow in the northeast was expected, so was immaterial. Nobody dreamed it would snow anywhere else.

Wed, 04/23/2014 - 13:24 | 4687097 RevRex
RevRex's picture

On one side of their mouths the socialist assholes are blaming everything on cold winter weather, yet from the other side, the lying pieces of democrat shit are still lying about GLOBAL warming?

 

 

Who here is still stupid enough to buy the Democrat's global warming lies?

 

Oh wait, the liars are calling it climate change......but what kind of idiot  is just now figuring out that WEATHER CHANGES?

Wed, 04/23/2014 - 13:58 | 4687251 Salah
Wed, 04/23/2014 - 15:01 | 4687499 Make_Mine_A_Double
Make_Mine_A_Double's picture

Who here is still stupid enough to buy the Democrat's global warming lies?

FlakMeister.....the DNC troll. I think he gets like a quarter each disinformation post. He'll be along shortly.

 

Wed, 04/23/2014 - 10:41 | 4686435 Max Damage
Max Damage's picture

.

Wed, 04/23/2014 - 12:15 | 4686832 stant
stant's picture

Most escrow for property tax went up. Nobody's Gona move up. Looking to down size

Wed, 04/23/2014 - 10:51 | 4686471 HaroldWang
HaroldWang's picture

And...there it is! Dow just went green! Bad is good again! The good ol days are here again!

Wed, 04/23/2014 - 10:52 | 4686473 TideFighter
TideFighter's picture

Negative amortized rate schedule, pick-a-payment, low-qualifying ARMS, Interest Only, Ballons, Prime+, 3% Down; are all devious fkn plans to remove a homeowner from equity building. It's just another form of financial rape; just like the entire credit card/collections industry. A debt defaulted credit-card dollar, by the time default insurance has been paid, sent to collections (where schemes like forced arbitration have prevailed), judgments entered and interest charged, returns $1.14. Proof that debt is worth more than the original FIAT.  

Wed, 04/23/2014 - 10:52 | 4686475 holmes
holmes's picture

Just blame it on Global Warming err... Climate Change. Yeah, that's it.

Wed, 04/23/2014 - 11:26 | 4686629 CrashisOptimistic
CrashisOptimistic's picture

And here we are -- the DEFINITIVE chart of the US recovery, with today's number:

http://research.stlouisfed.org/fredgraph.png?g=7iv

That's 1960's levels of sales, boys and girls, with 60 million more people in the country.

Buoyant economy!!

 

[Tylers, suggest you pick up that graph and post it on all housing articles.  Nothing else could say it better than the Fed's own research team.]

Wed, 04/23/2014 - 12:01 | 4686778 SubjectivObject
SubjectivObject's picture

I liked the "Source: Bullshit Bureau" reference.

[a trademark in waiting]

Wed, 04/23/2014 - 10:21 | 4686363 Winston Churchill
Winston Churchill's picture

Nothing a war will not cover up.

Wed, 04/23/2014 - 10:31 | 4686400 LawsofPhysics
LawsofPhysics's picture

Optimist.  At least during a real hot war people know what to expect...

"Accountability", "certainty", "price discovery", "moral hazard"...

what are these terms you speak of?  much like gold they appear to be relics of the past...

Wed, 04/23/2014 - 10:43 | 4686445 Winston Churchill
Winston Churchill's picture

Just like belle bottoms, they do return.

Wed, 04/23/2014 - 10:22 | 4686365 synergize
synergize's picture

Don't forget Ukraine - i'm sure there's some spin to be had from that...

Wed, 04/23/2014 - 10:23 | 4686366 JustObserving
JustObserving's picture

Perhaps, a 3% down payment for a house is still too high.

Wed, 04/23/2014 - 10:28 | 4686386 Grande Tetons
Grande Tetons's picture

Indeed, time for interest only. Gottha move this glut of shit. 

Wed, 04/23/2014 - 10:32 | 4686402 NoDebt
NoDebt's picture

Not aggressive enough.  Payment-optional ARM.

Wed, 04/23/2014 - 13:16 | 4687062 localsavage
localsavage's picture

Rent to own

Wed, 04/23/2014 - 10:55 | 4686493 Bernoulli
Bernoulli's picture

Zero down payment and 50k cash advance bonus upon signature.

That should do it! Why don't they do it with houses? Worked great with auto-loans, no?

Wed, 04/23/2014 - 10:23 | 4686370 Dr. Engali
Dr. Engali's picture

Zombieland Rule #2) Double tap.

Wed, 04/23/2014 - 10:24 | 4686374 Meatier Shower
Meatier Shower's picture

Ignorance is Strength.

Wed, 04/23/2014 - 10:24 | 4686375 BiteMeBO
BiteMeBO's picture

Do these numbers include under ground? 

Wed, 04/23/2014 - 10:27 | 4686379 FieldingMellish
FieldingMellish's picture

Dismal science indeed.

Wed, 04/23/2014 - 10:30 | 4686393 The worst trader
The worst trader's picture

Time to buy 2 more houses with subprime loans and let the fed pay for them.

Wed, 04/23/2014 - 10:30 | 4686394 Itchy and Scratchy
Itchy and Scratchy's picture

This just in! Igloo Sales beginning to melt!

Wed, 04/23/2014 - 10:31 | 4686396 Temporalist
Temporalist's picture

I have discovered the real issue here:  Joe Lavagina, unbeknownst to him, has his own weather system around his massive ass.

Wed, 04/23/2014 - 10:35 | 4686416 Drachma
Drachma's picture
From the source: "This is 14.5 percent (±12.9%) below the revised February rate of 449,000 and is 13.3 percent (±9.9%) below the March 2013 estimate of 443,000." Huge error bars, revised numbers, estimates, etc. In other words, "we just make this shit up as we go".
Wed, 04/23/2014 - 10:35 | 4686419 CrazyCooter
CrazyCooter's picture

While you imply it, the second chart is missing all its labeling.

Regards,

Cooter

Wed, 04/23/2014 - 10:36 | 4686422 youngman
youngman's picture

It looks like people are cutting back...homes first..then restaurants..then clothes...insurance is not far behind....living within their means now...maybe the new trend..

Wed, 04/23/2014 - 10:39 | 4686430 corporatewhore
corporatewhore's picture

im not sure if it is living within their means....probably they just don't have the funds.

btw, if you haven't read martin armstrong's latest post re: taxation of health benefits buried in the affordable health care act do so.  not only willyou pay higher premius but you'll also be taxed for your employer's contribution.  hahahahahaha

and taxation of all benefits is soon to occur.

Wed, 04/23/2014 - 11:45 | 4686720 StupidEarthlings
StupidEarthlings's picture

"im not sure if it is living within their means....probably they just don't have the funds."

Yeah, it's like he said: "living within their means"(by force).

;)

Wed, 04/23/2014 - 22:18 | 4689032 TruthInSunshine
TruthInSunshine's picture

It's not "living within their means" at all.

The entire last 4 1/2 years has been a "living by whatever available pool/instrument of debt" period engineered by BernYellen & the banking/finance industry that own them and your "elected" leaders.

Banks borrow from the Fed @ 0% (which monetizes deficit spending that benefits the military-finance-banking-political worker complex, and is a tax, present and future upon the citizens), and then either buy government bonds or loan out fiat to the shrinking pool of qualified entities/people borrowing
it at 4.5% (mortgages) to 21% (credit cards).

The last 4 1/2 years is a 100% debt (leveraged up) induced path to creating the largest, most permanent underclass of for-life debt serfs in the history of this country.

It's the complete financialization of the U.S. Economy by the do-nothings who produce nothing of value, while they parasitically suck the blood of an increasingly larger % of the population.

Wed, 04/23/2014 - 10:39 | 4686431 scubapro
scubapro's picture

 

unamerican to say the least....and am sure there is pending legislation to make that kind of behavior illegal, the future economic strengthening act.  

Wed, 04/23/2014 - 10:38 | 4686424 scubapro
scubapro's picture

 

 

fewer homes sales; really fewer   new mortgages so a decrease in the creation of new MBS,  continued shrinking of the deficit....taper to continue.       what other unconventional economic support might the fed decide its allowed to do?    negative reserve rates a la ecb?== leads to banks taking that 'cash' and not lending (too risky!) but buying govt bonds......but stocks at 23x forward wishes  are the only option  /sarc

Wed, 04/23/2014 - 10:43 | 4686444 j0nx
j0nx's picture

Because the NE is where 90% of the syphoned money from the rest of the nation ends up. NoVa real estate is crazy right now. Multiple offers in days on $600k+ houses. I'm a renter for life at this rate.

Wed, 04/23/2014 - 14:15 | 4687311 cynicalskeptic
cynicalskeptic's picture

Northern Va and Maryland are profiting from the money pouring into DC - lobbyists buying influence and gov employees that are grossly overpaid.

 

The 'Northeast' is traditionally NY, maybe PA and NJ, CT, MASS and maybe the rest of New England.   I'll bet that the housing market is hot ONLY in NYC and its burbs and Hedge Fund Heaven Connecticut - with maybe some action in Boston.

Lots of foreign money 'investing' in NYC housing along with the financial types spending a fortune.   

Wed, 04/23/2014 - 10:47 | 4686447 firstdivision
firstdivision's picture

Lulz.  No surprises here with the Chinese no longer looking to hide assets as much as needing to answer those margin calls, Russians staying out of the US market with the Ukraine theater playing, and those that pay attention to http://bloomberg.econoday.com/byshoweventfull.asp?fid=460764&cust=bloomberg-us&year=2014&lid=0&prev=/byweek.asp#top

Safety stocks (dividend stocks) are having every offer hit.  I can taste the fear in the air.

Wed, 04/23/2014 - 10:46 | 4686452 island
island's picture

D.C.  must be lumped in with the Northeast.   

Wed, 04/23/2014 - 10:46 | 4686453 gcjohns1971
gcjohns1971's picture

Q. Why did new home sales crash in all regions except the traditionally coldest, wettest, and snowiest Northeast, where sales rose?

A: Because the Bankster regime, and the government they own are a machine that turns our country into a plantation where the wealth of other regions is systematically transfered to the Northeast, where those banks and the families that own them are based.

Wed, 04/23/2014 - 10:46 | 4686456 F.A. Hayek
F.A. Hayek's picture

Don't they know it snowed in the northeast less than a week ago?

Wed, 04/23/2014 - 10:53 | 4686482 HaroldWang
HaroldWang's picture

I wish Steve Liesman didn't take the week off. I'm sure he could explain this perfectly and we'd all breathe a sigh of relief and run the market to green. Oh, wait, it just went green without him. 

Wed, 04/23/2014 - 10:55 | 4686498 F.A. Hayek
F.A. Hayek's picture

It snowed somewhere this winter, therefore I stopped paying my mortgage and definitely didn't buy any additional houses.

Wed, 04/23/2014 - 10:57 | 4686506 codecode
codecode's picture

Nice edit on the source title - Source: Bullshit Bureau 

Wed, 04/23/2014 - 12:26 | 4686861 Alea Iactaest
Alea Iactaest's picture

Signed in just to +1

Maybe shadowstats should change its name?

Wed, 04/23/2014 - 23:28 | 4689207 TruthInSunshine
TruthInSunshine's picture

@code red - major +1 to you for that really, really good pdf link. Everyone with an interest in the cleanest data from a government source I've come across regarding the actual state of the housing "recovery" should read that in its entirety.

Wed, 04/23/2014 - 11:00 | 4686523 FreeNewEnergy
FreeNewEnergy's picture

I could use another crash about now. And another drink. And another smoke. And maybe another house.

Silver? No thanks, I have plenty of that approaching my basis of $17/oz.

Wed, 04/23/2014 - 11:02 | 4686533 elwind45
elwind45's picture

Green and glass skyrocketing just not being tracked

Wed, 04/23/2014 - 11:04 | 4686539 radical
radical's picture

Need to have a Q&A session forcing the gov/NRA economists to answer an economic question - "For your claimed shortage of house inventory causing a reduction in sales, you have to know the demand curve and specifically the elasticity of the housing demand curve. What does that demand curve look like and what is your source?" They haven't a clue. Trust me, I asked a Fed economist to answer that after a speech he gave with the housing claim in his presentation. Response, "good question."

 

 

Wed, 04/23/2014 - 11:08 | 4686561 ebworthen
ebworthen's picture

"...not helped by the weather" was what I heard on Network News last night.

Um-hum; an un-ending supply of spackle for the cracks.

Wed, 04/23/2014 - 11:09 | 4686563 Son of Loki
Son of Loki's picture

"No one saw this coming...."

Wed, 04/23/2014 - 11:14 | 4686584 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Thanks for clearing that up with the last chart. LOL. What a fucking sham this whole "recovery" is. 

Wed, 04/23/2014 - 11:21 | 4686621 SillyWabbits
SillyWabbits's picture

The housing market disruption only occurred in California.  We never experienced any such growth here in our locality.  All real Estate is local as you know. Buying a home here today is the best investment you will ever make.  Our house prices are up on value – not speculation or cheap money.

sarc

Wed, 04/23/2014 - 11:25 | 4686637 Itchy and Scratchy
Itchy and Scratchy's picture

'Blame it on the rain'

Wed, 04/23/2014 - 11:32 | 4686671 MFL8240
MFL8240's picture

No snow in the entire southwest!

Wed, 04/23/2014 - 15:25 | 4687598 Itchy and Scratchy
Itchy and Scratchy's picture

'Blame it on the no-rain.'

Wed, 04/23/2014 - 11:36 | 4686688 icanhasbailout
icanhasbailout's picture

Is the Washington DC market considered "Northeast"?

Wed, 04/23/2014 - 11:49 | 4686734 NESD
NESD's picture

Maybe the hardy folks who live in the Northeast can handle a bit of cold and snow and not let weather unduly affect home buying.  Obviously the whimps who live elsewhere cannot handle some adverse weather.

Wed, 04/23/2014 - 11:53 | 4686749 Bemused Observer
Bemused Observer's picture

Oh, stop playing the housing game!

Seriously, a house is NOT an "investment vehicle"...it is a HOME. A place where you live and keep your stuff. If that is indeed the way you see it, then it is irrelevant whether values go up, down or sideways, because you wouldn't sell or refinance your home just to try and capture some capital gains, would you? I mean, surely it would occur to you that the market is being manipulated, and you'd not be so foolish as to bite at that hook again, right? You'd realize they were just trying to lure you into going further into debt by waving some juicy 'equity' in front of your face. Well, you THINK it's equity, so you go for it, and as soon as you do, the values go down again, and now you're underwater...

*sigh*

Wed, 04/23/2014 - 11:55 | 4686762 j.tennquist
j.tennquist's picture

Love the new official name of the Census Bureau on the final chart.

Wed, 04/23/2014 - 12:05 | 4686794 Gimp
Gimp's picture

Why anyone with an IQ > 70  takes any notice of these BS reports, data points, indexes is beyond me.

Got to keep the circus going..Roll-up, roll-up for the magical mystery tour

Wed, 04/23/2014 - 12:43 | 4686920 migra
migra's picture

Where I live in San Diego the median household income is 89k. The median home price is 650k. Nobody buys houses here any more. They come on the market, then drop off a few months later. Its was 70 and sunny every fucking day all winter long, so the weather is not the culprit.

 

The housing bubble is poping in the southland.

Wed, 04/23/2014 - 13:16 | 4687061 yellowsub
yellowsub's picture

It's because the weather is too nice now!

Wed, 04/23/2014 - 13:21 | 4687083 Deathrips
Deathrips's picture

I am here and seeing the same. Long way to fall before i bite on anything here.

 

RIPS

Wed, 04/23/2014 - 14:08 | 4687289 vonSavage
vonSavage's picture

You know Killington is still open...

 

Do NOT follow this link or you will be banned from the site!