The improvement in the housing market is also showing in the results of numerous homebuilder stocks.
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New York, NY (PRWEB) October 25, 2012
In a recent Investment Contrarians article, editor George Leong points out that recent data on the housing market, released October 17, show a blow-out in housing starts and building permits, indicating that the housing market is displaying much-improved metrics, and could be beginning a slow, but steady, recovery.
Leong reports that in September, there were an impressive 872,000 housing starts in the U.S., 13.5% above the 768,000 estimate, and the upwardly-revised 758,000 in August. Leong adds that an equally strong building permits reading of 894,000 in September indicates that builders are expecting a good flow of buying in the housing market.
Leong also reports that home prices are edging higher, with the S&P/Case-Shiller index, comprising of the 20 largest U.S. metropolitan cities, increasing a better-than-expected 1.2% in July; this represented the sixth straight month of increases.
“The improvement in the housing market is also showing in the results of numerous homebuilder stocks,” notes Leong. “Homebuilders are continuing to deliver better results. Toll Brothers blew away the consensus earnings estimates in its fiscal third quarter after reporting $0.36 per diluted share, double the estimate of $0.18 per diluted share. Revenues surged 40.6% year-over-year.” (Source: “Toll Brothers Reports FY 2012 3rd QTR and 9 Month Results,” GlobeNewswire, August 22, 2012.)
Leong also points to the NAHB Housing Market Index report, which he notes was encouraging at 41 in October, but the reading still indicates that more builders have a poor view, rather than a positive view, toward the housing market. Leong explains that the 50 level is the midpoint—not reached since April 2006, which is over six years ago.
Leong concludes, conceding that, yes, there are still some concerns regarding the housing market, but he expects housing to continue to improve, especially if the jobs market improves.
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work, and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.