Home sales are down a long ways. But why?

Sales of existing homes plunged in March by the largest amount in nearly two decades, reflecting bad weather and increasing problems in the subprime mortgage market, a real estate trade group reported today. … David Lereah, chief economist at the Realtors, attributed the big drop in part to bad weather in February, which discouraged shoppers and meant that sales that closed in March would be lower. … There was weakness in every part of the country in March. Sales fell by 10.9 percent in the Midwest. They were down 9.1 percent in the West, 8.2 percent in the Northeast and 6.2 percent in the South.

Clearly, the 9.1 percent sales drop in the West is directly attributable to the weather. Here in Arizona, it’s been a brutal mid-70s and sunny for about two months now. I can’t speak to the devastating effects of the moderate early morning shower we had last Saturday here in Tucson, though. The fact that the drop in the West was one percentage point larger than the drop in the Northeast is also obviously weather-related. The guys who get quoted in reports like this should just own up and change their job title from “Chief Economist” to “Chief Shaman for Rationalizing the Juju.”