Recork that Champagne

While Wall Street celebrates the 10% surge in existing home sales, let's not forget that just last week we were groaning over a 10% drop in new home starts.

While Wall Street celebrates the 10% surge in existing home sales, let's not forget that just last week we were groaning over a 10% drop in new home starts - 30%, year over year.

What seems to be happening is this: the economy generally is reviving (so sales are picking up), but the country is so overbuilt with housing stock that there is no occasion to add new homes, the existing inventory can more than meet rising demand.

The pickup in home sales is an indicator of recovery, not a driver.