US Home Prices Continue To Accelerate, But Pace May Be Getting Ready To Decelerate

posted in: Economy | 0

US home prices continue to rise at an accelerating pace but may be in the process of cooling down. This can have implications for consumer sentiment, hence consumer spending. In June, home prices nationally shot up 18.6 percent year-over-year. This … Continued

Sales Nowhere Near Bubble Highs – Several Other Housing-Related Metrics Into Record Territory

posted in: Economy | 0

From the sales point of view, U.S. housing remains way below the bubble highs of a decade ago, but several other metrics have pushed into record territory. November’s existing home sales were published this week.  They were up 5.6 percent … Continued

With Income And Home Price Headwind, Hitherto-Housing Tailwind Rates Need Close Watch

posted in: Credit, Economy | 0

Rates are rising – probably not enough to seriously hurt sectors such as housing, but will in due course if the momentum continues. In merely nine sessions, 10-year Treasury yields have gone up by 24 basis points to 2.28 percent, … Continued

Limited Supply Of Homes Behind Price Acceleration – Inventory Inching Higher

posted in: Uncategorized | 0

Interesting dynamics are at play in U.S. housing. Sales of both existing and new homes are decent, but price has galloped ahead.  Add to that household formation and supply of homes, housing could very well be at an interesting juncture. … Continued

ITB Up 33% Post-Election, Bulls Defend Crucial Trend Line Support – Momentum Slowing

posted in: Economy, Equities, Technicals | 0

ITB, the iShares U.S. home construction ETF, has posted seven straight positive months.  The rally began last November – post-election. Momentum is not broken, but is not in acceleration either.  May was essentially unchanged – up 0.25 percent – with … Continued

Recent Spurt In Rates Bound To Hurt Housing, If Sustained — Likely Not Sustainable

posted in: Credit, Economy | 0

U.S. sales of homes – both new and existing – are at/near cycle highs.  This amidst personal incomes that are struggling to rise with surging home prices.  Against this background comes the recent backup in mortgage rates, particularly post-Trump victory.  … Continued

ITB Loses Three-Year Support; Bounce Possible, But Needs To Stabilize First

posted in: Credit, Economy, Equities, Technicals | 0

U.S. household real estate has come a long way. Back in 2Q06, the market value of U.S. household real estate peaked at $22.7 trillion, before coming under sustained pressure after the bubble burst.  Amazingly, in the next five years, it … Continued

Housing Relative Bright Spot In Otherwise Sub-Par Recovery, But Sustained Price Rise Risk

posted in: Credit, Economy | 0

In an otherwise lackluster post-Great Recession recovery, housing has provided decent support to the U.S. economy.  The only question is durability – or a lack thereof. Off post-bubble lows, sales of existing homes increased from a seasonally adjusted annual rate … Continued