Thursday, September 6, 2012

Another Sign the Housing Market is Turning Upward

Homebuilding stocks are hitting 52-week highs today:

PulteGroup, Inc. (NYSE:PHM)

Lennar Corporation (NYSE:LEN)

D.R. Horton, Inc.(NYSE:DHI)

As I have recently pointed out in the EPJ Daily Alert, the apparent turnaround in the housing market is occurring despite a fairly tight Fed monetary policy. If the Fed starts printing again, housing prices could soar.


  1. You never learn!

    Until you fully understand the concept of disaggregation you will be on the losing end of hurricane speed headwinds. Disaggregation: the breaking up of a total, integrated whole, or a conglomerate, into smaller elements, parts or units, usually for easier handling or management. It is obvious that you never looked into the guts of the 2010 household data and compared it to previous census results.

    Like Warren Buffett, you fail to realize that hormones can be both good and bad.

  2. According to Jim Rogers they have been printing since before Jackson Hole.

  3. A friend of my just sold a house he owned just last week. The buyer received a 95% loan for the purchase. Meaning if the buyer needs to sell the home in the next couple of years he most likely be underwater. Round two will start soon

  4. As rates spike, housing prices will fall. Much better idea to stock up on silver right now.

  5. The prevailing sentiment is that there is a lot downside for housing, and if you say the housing has bottomed, you piss off a lot people. Many of them are patiently waiting to buy one when the price is low enough. These people have a value system in their own head, and they don't listen to anyone. The fact is that the price is going up, whatever you want to call it to please yourself.

  6. by the way, the rate is not going up any time soon. The Fed keeps saying that, but a lot people just don't believe it.

  7. I have a really hard time believing this is going to be a sustained upward movement in house prices.

    If you called this right Bob, my hat is off to you. I just think that not only is the shadow inventory still a problem, but when interest rates rise it's going to "pop" any small bubble that they are trying to blow up in housing again via more foreclosures....

    Only time will tell. I'm with anon. above, I'm putting my extra income in silver and taking a wait and see approach. That seems to be a safer bet than housing to me despite your prediction.

    Aside from the fact I'm taking the Atlas Shrugged approach to denying the beast as much income as possible, including property tax.


  8. Just placed our house on the market less than a week ago. Our first showing was a single guy who has 100% financing through USDA home loan.

    Although we are glad to sell our house in these bad times, we cannot help feel outed because my spouse and I work 12 hour shifts in the medical field and have excellent credit scores but can only get approved for a conventional loan due to our income and we struggle to come up with the monies that is required to buy another house. What is wrong with this picture.. if you're low income, things get handed to you...this "USDA LOAN" will provide a person broadband internet and will finance a house or a mobile home up to 33 years and if you cannot make the payment the government will recalculate and subsidize your payment!!!!! WHAT THE HELL IS GOING ON !!!(ANGRY)