Wednesday, April 15, 2009
After roughly 3 1/2 years of the worst housing market recession in U.S. history, we are beginning to see signs that the worst has passed. The National Assoc. of Realtors released their survey of home builders today (first chart) and it came in much higher than expected. Bloomberg's index of the stock prices of major home builders (second chart) today is 9% higher than it was six months ago. Construction activity has been so low for so long that most if not all of the excess inventory of homes has been worked off. Home prices have fallen in many areas by enough to stimulate demand. Spring is in the air in more ways than one.
Posted by Scott Grannis at 10:08 AM