Most everyone is spinning the 1.7% slide in October Pending Home sales as good news, but it's not good news. SmartMoney gets the spin correct in the lede, but then quotes the National Association of Realtors' chief economist's blather about the recent slide in home prices as being a "temporary correction" and that home sales "remain historically high". OMG, David Lereah not only has Kool-Aid I.V.s attached to both arms, but cuts the stuff in his own Kool-Aid lab.Bottom line: Economists were expecting just a .5% MOM decline (8th monthly drop) in this series, so the real and ultimate conclusion is that pending home sales were worse than expected and were down 13.2% from October, 2005 (YOY).
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