Thursday, June 23, 2011

Home Sales: Bumping Along the Bottom

The Lehmann Letter (SM)

Today’s new-home sales report from the Census Bureau is as depressing as the last report:

319,000 new homes were sold in May. Take a look at the chart and you can see we’re bumping along the bottom.

New Home Sales

(Click on chart to enlarge.)

Recessions shaded

Here’s the deal: No construction recovery = No prosperity.

Slack home sales = Slack recovery.

It’s as simple as that.

(The chart was taken from [Click on Seminars and then Charts.] Go there for additional charts on the economy and a list of economic indicators.)

© 2011 Michael B. Lehmann

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