IKN

drowsy syrups of the world

They call it (in)elasticity

It’s not LatAm, but just a quick post on today’s US home sales news as the issue really is ground zero to all the mess.

This report from AP covered the news from the USA’s National Association of Realtors that home sales rose 2.9% in April and is full of positive spin, using phrases such as “snap up bargains”, “rose modestly”, “beat expectations”, “buyers swooped in” etc etc.

But you can’t hide economics 101 from the figures, either. When annual sales rise 2.9% to 468,000 and average house prices drop by 15.4% in the same period, you just know there are lower prices to come. This isn’t even worth debating…you can, quite literally, put the mortgage on it.

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