Wednesday, March 01, 2006

Bursting the Housing Bubble, Part 43

Bursting the Housing Bubble, Part 43

This post is brought to you by The Big Picture.

The stats:

Part 1:
  • The supply of houses for sale (in terms of months of supply) is at a 10 year high.
  • The number of houses under construction is at an all-time high (or at least for the 40 years that this stat has been kept).
  • The 3-month moving average of houses sold has declined for year, and the decline is accelerating.
Part 2:
  • Meanwhile, condo sales (a leading indicator) dropped 10.6% from December.
Conclusion? Mean reversion is a bitch. And soon the blood will flow.

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