In A Phantom Rebound in the Housing Market, the NYT gives us more information as to how exactly housing sales rebounded in November. It turns out that the government is over counting home sales because they do not bother to find out how many homes which were logged as sold, are not sold because the buyer backed out of the deal (an estimated 38% for November).
And by the way here is a development in Australia which should make lenders in America shake in their boots. A court has canceled the housing debt owed by one owner because the court said that the lender should have known that the person they gave money to would not be able to repay it (which is true, they should have known). If I were an enterprising American lawyer, I would smell a bundle of money here!
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