Wednesday, September 16, 2009
Too different views of the state of the residential real estate market both suggest rather strongly that we've see the bottom. The top chart is a survey conducted by the National Assoc. of Home Builders that covers current sales rates, 6-mo. sales expectations, and traffic of prospective buyers. The second chart is a cap-weighted index of the stock prices of 18 leading home builder stocks. More good news and yet another sign that this is a V-shaped recovery. Residential construction spending had fallen 64% from the highs of early 2006, so the rebound from exceptionally low levels could be quite impressive from a percentage change standpoint, if not from an absolute dollar standpoint.
Posted by Scott Grannis at 10:21 AM