The media dutifully reported the NAR’s version of seasonally adjusted, built-in monthly error times 12, annualized, officially recorded, home sales closings in June today. The housing industry cartel and lobbying behemoth said that houses are selling at an annual rate of 5,340,000 on that basis.
Bloomberg enthused that, “Sales of previously owned U.S. homes climbed to an eight-year high in June as momentum in the residential real estate market accelerated.â€Â  The WSJ crowed, “Prices of existing homes sold in the U.S. hit a nominal high in June, eclipsing the previous mark set in 2006, as sales increased at their strongest pace in more than eight years.â€
What about those statements, true or false? The answer: TRUE! The median sale price was up 6.5% year to year to a new all time high. June officially recorded sale closings totaled 573,000, which exceeded the June 2007 level of 536,000.
The problem, as always, was the bullish slant of the mainstream reporting, particularly the Journal’s. The “nominal high†is above the highs at the top of the bubble in 2006. There was no mention of the bubble association in either report, as if being higher than the last bubble doesn’t make this a bubble. And the sales volume was similar to the volume level just before the market collapsed. No mention of that either.
We expect the bullish slant from the Journal because it is the PR arm of Rupert Murdoch’s, Move Inc. According to the WSJ’s standard disclaimer when reporting NAR propaganda, Move Inc. “operates a website and mobile products for the National Association of Realtors.†Oh gee, a website and mobile products–nothing to see here, move along. The disclaimer leaves out a minor detail or two. Move, Inc. actually OPERATES Realtor.com, the NAR’s online listing service for consumers in the housing market, and it operates several other services whose sole purpose is to serve NAR members and customers.
