Monday , 11 December 2017


U.S. Housing Market Has All the Makings of a Turnaround – Look for Yourself

If I had to guess, I would say that a majority of people in the country still view the housing market in a negative light. They note:

  • the still-large overhang of foreclosed properties,
  • the still-low rate of new housing starts, and
  • the still-depressed level of housing prices in many parts of the country

but that is looking at the market from a static viewpoint. There have been some very important improvements in the housing market over the past 18 months…that have all the makings of a clear turnaround that is underway and likely to continue. [Let me explain.] Words: 388

So says Scott Grannis (http://scottgrannis.blogspot.ca) in edited excerpts from his article* entitled Housing market continues to improve.

 Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below to some degree for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.

Grannis goes on to say, in part:

1. Home Builders’ Perceptions of Current Single-family Home Sales & Sales Expectations Up

The chart below shows the results of a monthly survey of home builders’ perceptions of current single-family home sales and sales expectations for the next six months. Even though home builders’ sentiment is still below 50—which signifies that somewhat more builders still view conditions as poor rather than good—the improvement in the index so far this year has been dramatic.

2. The Number of Homes for Sale is Relatively Small

There may be lots of housing inventory “waiting in the wings,” but currently the number of homes for sale is relatively small compared to the current rate of sales [as the chart below illustrates]. Again, dramatic improvement on the margin.

 3. A Significant Decline in the Number of Vacant Homes for Sale

The chart below shows the fraction of homes for sale that are vacant. While still somewhat high from an historical perspective, there has been a significant decline in the number of vacant homes for sale this year.

 4. The Stocks of Major Home Builders Have Increased

As the chart below shows, the stocks of major home builders have increased significantly from their lows of October 2011—up 94%. Stocks are still depressed from their bubble highs of 2005, but the recovery from the lows has been dramatic.

 Conclusion

[The above exemplfy that] on the margin, there have been some very important improvements in the housing market over the past 18 months. It’s hard for me to believe that these changes are ephemeral—they have all the makings of a clear turnaround that is underway and likely to continue.

*http://scottgrannis.blogspot.ca/2012/11/housing-market-continues-to-improve.html
Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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