NEW YORK (PNN) - May 22, 2014 - After 6 months of missed expectations, last month's fragile beat of dismal expectations provided just enough of a glimmer of hope to stoke more short squeezes in homebuilder stocks and strengthen the pillar of the Fascist Police States of Amerika “economic recovery”.

Now we are in April... the start of the key seasonal selling season... and existing home sales rose modestly MoM (but fell for the 6th month in a row YoY) and missed expectations. There is no post-weather bounce, and still the National Association of Realtors is blaming slow April sales being delayed due to winter weather! This is the worst start to a year since 2007.

Some disturbing trends:

• Existing-home sales in the Northeast are 6.3% below April 2013
• Existing-home sales in the West are 10.0% below a year ago
• Existing-home sales in the Midwest slipped 1.0% in April to a pace of 1.03 million, and are 9.6% below a year ago
• Existing-home sales in the South are 3.5% below April 2013

The details continue to show that the "normal" housing market continues to disappear, with the bulk of existing housing made simply to serve investors and flipping speculators.

• 5.9 months supply in April vs. 5.1 in March
• Inventory rose 16.8% to 2.29 million homes
• 1st-time buyers 29% of total sales; all cash 32%; investors 18%
• Distressed sales 15% of total sales; of which foreclosures 10%; short sales 5%
• Median home price rose 5.2% from last year to $201,700

First-time buyers continue to represent fewer than one-third of all buyers at 29% in April, down from 30% in March; they were 29% in April 2013.

All-cash sales comprised 32% of transactions in April, compared with 33% in March and 32% in April 2013. Individual investors, who account for many cash sales, purchased 18% of homes in April, up from 17% in March; they were 19% in April 2013. Seven out of 10 investors paid cash in April.