Does Existing Home Sales Decline Foreshadow Economic Slowdown? [PulteGroup, Inc., Lennar Corporation, KB Home]

home-pricesThe Silver Bug: Irrational exuberance remains at an all time high.

Investors believe the stock market will continue its upward trend forever.

Or at least they did.

Those beliefs are now being put to the test as existing home sales suffer a major setback, dropping by 1.8% in July and 1.1% in August – the biggest decline since November 2013.

This false economy is about to be put to the test as a negative trend in housing appears to be setting in.

Exisiting Home Sales 2014

 

Existing Home Sales_2

(Charts via ZeroHedge)

In addition to this housing slowdown, U.S. economic activity was minus 0.21 percent in August, an indication that the wild estimations made about the economic recovery may be misplaced.

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