By John Galt
September 26, 2011 – 12:15 ET
To say that this morning;s report from the Commerce Department was any encouragement about a long term economic recovery in the construction industry would be a major lie. The data continues to reflect and bounce along the long term bottom created by the speculative frenzy from the previous decade. The most interesting stats are reflected in the ongoing decline in sales for homes over $300,000.
First chart for review is the monthly new home sales in total (Click on charts to enlarge/reduce size):
The continued decline in home sales over $300K indicates the wealthy and middle class are deeply concerned about the nation’s economic future:
In the government subsidized arena of under $299 K home sales, it is not much better:
Sadly this nightmare shall continue and blaming Tropical Storm Irene, the weather being too hot, too cold, too snowy, too rainy, too cloudy, or too foggy only belies the truth:
The economy is in a recession and probably heading for a revisit to a depression if not worse. The data, sadly, does not lie.