Reply #16: Falling House Prices: It's Worse Than It Looks (lag time in reports)

[ozymandius]

It is important to remember that the index averages sale prices over the three months from September through November. Sales contracts are typically signed 6-8 weeks before sales are closed. This means that the contracts for the homes sold during this period were mostly written up in the months July through September. Most data show the economy turning sharply lower in September, which means that two of the three months in which the contracts in the October index were signed preceded the sharp downturn.

http://www.prospect.org/csnc/blogs/beat_the_press_archive?month=12&year=2008&base_name=falling_house_prices_its_worse