Home sales and prices continue falling

Seasonal adjustments are starting to have huge problems and produce misleading information. From the Washington Post:

. . . Without adjusting for seasonal differences, the survey of prices in 20 metropolitan areas fell to its lowest level since the housing market downturn began.
But analysts pointed to bright spots hidden in the data — and some ventured that the housing market may have finally found its low.
. . . . the existing inventory of new homes for sale had fallen sharply since a year ago. The inventory of homes, measured in the number of months they would take to sell, stood at 5.3, down from seven a year ago, according to an analysis by the High Frequency Economics consulting firm. Inventory is considered a key sign of future housing investment.
Through March, sales technically fell, to 328,000, but only because the sales figures reported by the Commerce Department in February were adjusted sharply upward, from 313,000 to 353,000. Without that adjustment, the March data would have registered a 4.8 percent increase. . . .