Household formation has picked up speed, as have sales of homes, putting downward pressure on the supply of homes and upward pressure on prices. Prices are appreciating seven-eight times the rate of consumer inflation, hence not sustainable. US households are … Continued
US home prices continue to gallop ahead. There has been a marked increase in owners’ equity. This should buoy consumer sentiment and help the economy. The risk is when – not if – the trend reverses and goes the other … Continued
After the sharp contraction in economic activity in the early months this year, inventories are running low. Growth gets a tailwind as they get rebuilt. There is tight correlation between economic growth and corporate profits. Stocks are anticipating this. Home … Continued
Are U.S. homebuilders getting too aggressive? Makes you wonder. This month, the National Association of Home Builders housing market index rose three points to 64, to a 10-year high. There have been times in the past when builder sentiment ran … Continued
There is a dichotomy between U.S. sales of new and existing homes. This has been preceded by a dichotomy between how their median prices were diverging from each other. June saw existing homes jump to a seasonally adjusted annual rate … Continued