Perhaps one should look at why the numbers are down. Considering the fact that the largest decline can be seen in the West, one must ask what is the cause. Considering that California has seen the largest decline, one has to wonder, maybe it has to do with the fact that the tax rates are higher and politicians in California continue to talk about raising them even more...

Looking at the chart you provided, overall both existing and new home sales increased from January to February and are only down three-tenths of a percent and two-tenths of a percent from the previous year. Add in the fact that we have seen record sales in previous months this is not surprising. Sales fall and rise, that is the nature of the market. If a decline of less than one percent is a bursting of the bubble, well better sound alarms.

Perhaps one should look at the actual increase in some areas. So the west is losing sales, well it seems as if other areas are gaining, hmmm could this might actually have something to do with people relocating??? Moving with jobs or to escape the ridiculous taxes in some areas??

dmk