The Media Doesn’t Always Report the Whole Story

by Tyler Osby on November 6, 2009

Don’t Trust Everything You Read

Some days, newspaper headlines are a terrible place to get your real estate news.

b;ogToday is one of those days.

After the September New Home Sales report showed sales volume down from August, the mainstream media jumped on the story:

But the headlines miss the point, somewhat.  Yes, home sales volume is important to housing, but it’s not as important as home supply.

The Housing Recovery Continues

A deeper look at the New Home Sales data reveals an interesting comparison point:

  • New home sales volume fell 3.6%
  • The number of new homes available for sale fell 3.8%

In other words, sales outpaced supply — a running theme this year and a positive signal for housing.

Since peaking in January 2009, the supply of newly-built homes has now dropped by 40 percent.  The average sale price is up 15% over the same period.

This is why you can’t get your real estate news from the headlines.  You have to dig a little bit deeper to get the real story.

September’s New Home Sales report was plenty strong.  The housing market recovery continues.

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