“Every single thing about housing is flashing green,” he said in an interview with CNBC-TV on Friday. “There’s not one thing that’s flashing red.” Household formation is up, housing inventory is down, and housing affordability is at an all-time high, he said.
Mr. Dimon also noted that while the much-ballyhooed “shadow inventory” of properties that could one day become foreclosures is high, that shadow inventory is declining at a time that banks are getting smarter about foreclosure alternatives such as short sales, where a homeowner is allowed to sell his or her home for less than the amount owed.
Of course, if you were a subscriber to the EPJ Daily Alert, you would have known this months ago. From the September 21 Alert:
The housing market continues to be the new strong sector.
From the September 25 Alert:
We have likely seen the bottom in the housing market and it is a good time to buy a house.
From the September 26 Alert:
The increase in home prices has been supply driven, but if mortgages for new homes continues to climb, it means we will see strength in home prices from the demand side also. If Bernanke's latest money pumping hits the system, housing prices will soar dramatically.