Thanks, Jean-Claude for making me take a second look at my methodology on my Absorption Chart. I had anticipated your point about the lag between listing dates and sales but had unfortunately gotten the formula backwards in my chart — basically dividing inventory by lagging sales, rather than forward sales: moral of the story: don’t [...]
Entries from January 2009
Revised Absorption Chart, but the results are the same, only worse
January 30th, 2009 · 1 Comment
Tags: Data · Economy · Market news
Supply/Demand: Does it predict price? Maybe not.
January 25th, 2009 · 6 Comments
Now hold on there, matie! Basic economic theory says more supply than demand, prices will fall, right? Well take a look at this graph. It shows the absorption rate of single family home listings from January 2006 through December 2008 plotted against median prices (click to make it bigger):
“Absorption” is basically the number of weeks [...]
Happy New Year! — The Official Blog Launch
January 13th, 2009 · 2 Comments
Happy New Year everyone! I’d intended to illustrate this post with suitable icons for every winter tradition from Christmas to Kwanzaa but decided against it when I couldn’t think of a suitable graphic for non-believers. And why should they (we) feel left out?
The image is of a sculpture by Rodin. I saw it in the [...]
Tags: Blogging