This means existing home sales improving, not just prices going up marginally; but first-time home buyers coming into the housing market, inventory of distressed homes decreasing, and obviously a continued rise in housing starts.
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New York, NY (PRWEB) October 31, 2012
In a recent Profit Confidential article, financial expert and lead contributor Michael Lombardi reports that recent data show U.S. housing starts in September increased 15.0% over August, to an annualized rate of 872,000 units, as compared to 647,000 in September 2011. While this increase shows that housing starts are certainly moving in the right direction, Lombardi states that this doesn’t draw a clear picture of what’s really happening in the housing market.
Stating some important facts about housing today, Lombardi reports that at the end of the second quarter of 2012, housing market prices were still down more than 30.0% from 2006. He adds that a total of 22.3% of all residential properties with mortgages on them had negative equity at the end of the second quarter, the equivalent of 10.8 million residential properties.
In the article “Why Rising Housing Starts Do Not Signal a Recovery for the Housing Market,” Lombardi explains that in a recovering housing market, what needs to be seen is a continued improvement in the overall market conditions.
“This means existing home sales improving, not just prices going up marginally; but first-time home buyers coming into the housing market, inventory of distressed homes decreasing, and obviously a continued rise in housing starts,” says Lombardi.
But according to Lombardi, none of this is happening. Lombardi concludes by conceding that the housing market is witnessing some good things, but from a bigger point of view, he reasons, it still has a long way to go.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.