Tuesday, August 21, 2007

Speaking of indexes....or is it indicies?

The AP reports, "The National Association of Realtors' Commercial Leading Indicator for Brokerage Activity rose to 120.7 in the second quarter, up from 119.7 in last year's second quarter and 120.1 in the first quarter this year." This marks nine quarters of consecutive growth.

Now, the story contrasts this to the residential turmoil, but now the real question is whether this indicates continued growth or a lag. With sound fundamentals one would think the former, but with tightening credit, we'll have to see. In fact, the aforementioned S&P indexes show a 6.6% increase in May sale prices from a year ago, but the head of the index committe indicated, "[t]hese gains appear to be joining the residential market in their shrinking returns."

I just know I am busy right now and that I'd better stop blogging and start billing.