The INE has released October's home sales statistics. Derived from new deeds registered, the figures show a month-on-month decline in purchases of new homes in excess of the normal seasonal variation. Sales of second-hand dwellings were, in contrast, relatively firm.
Is there some possibility that the not entirely compatible goals of asset value preservation and the need to sell foreclosed or exchanged-for-debt new homes are causing financial institutions that find themselves in the promotion business to be too rigid with regards to pricing? If we were at all right in our earlier take that current banking practices were mildly deflationary in terms of housing prices, we might see more of this in the future.
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2 Comments:
Charles,
It looks like you are abandoning your monotonist manifesto with that 12-month rolling sum chart. Freefall a la Edward Hughes it seems to me.
Yeah well, I'm on the verge of switching horses. Edward's latest entries on Greece (especially) clearly state there's nothing to worry about. Edward's been wrong on everything for the last two years and I have no reason to expect any change in that.
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