It’s important when reflecting on the sales results to consider that over 71.2% of all sales were for properties priced below $250,000 while just over 7.3% were priced at or above $500,000.
The results indicate that the government’s tax gimmick (second and final expiration is upon us) is driving a surge of phony demand and bringing a renewal of speculative animal spirits but the effect will likely be temporary.
Such stimulus is far more relevant to property prices of low level than those in areas like Hoboken where shadow inventory is bulging and buyers have completely disappeared.
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Even S&P doesn't believe the jump in their own data!
“For the S&P/Case-Shiller Home Price Indices, S&P reports two data sets – before seasonal adjustment and seasonally-adjusted. In some recent reports the two series have given conflicting signals, with the seasonally-adjusted series rising month-over-month and the unadjusted series declining. After reviewing the data, the S&P/Case-Shiller Home Price Index Committee believes that, for the present, the unadjusted series is a more reliable indicator and, thus, reports should focus on the year-over-year changes where seasonal shifts are not a factor.”
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