After watching some of the evening news commentary last night on the latest Case-Shiller home price data, it became quite clear that the mainstream media did the nation a big disservice by fawning over the price increases in May, juiced as they were by the expiring homebuyer tax credit. Economist (surprise!) Casey Mulligan writing at a NY Times blog was similarly clueless. Here’s a pretty good take on the data from the Wall Street Journal:

The WSJ story referenced in the interview above – Supply of Homes Set to Grow – details the supply problem that looms and the math is pretty simple. In addition to some homebuilders ramping up production you have more than a year’s supply of foreclosed homes that have yet to hit the market, all of which makes any talk of a lasting rebound premature.