The housing market has clearly bottomed out and is gaining some traction.
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New York, NY (PRWEB) November 14, 2012
In a recent Profit Confidential article, contributor and financial expert George Leong notes that a recent blow-out report in housing starts and building permits recorded an impressive 872,000 housing starts in September, which is 13.5% above the 765,000 Briefing estimate and its upwardly revised 758,000 estimate in August. (Source: “Housing Starts,” Briefing, last accessed November 13, 2012.) With an equally strong building permits reading, Leong reports that the strengthening in the housing market prediction for 2013 is now showing up in the results of numerous homebuilder stocks.
“The housing market has clearly bottomed out and is gaining some traction,” states Leong, noting the growth in building permits, housing starts, and an upward move in home prices across the nation.
He reports that the S&P/Case-Shiller Home Price Index, comprised of the 20 largest U.S. metropolitan cities, increased a better-than-expected two percent in August, representing the seventh straight up month. Leong points out that the housing market is certainly on the mend.
In the article “Why the Housing Market Is Promising but Overextended,” Leong notes that lending support to the housing market prediction for 2013 was an equally strong building permits reading at a whopping 894,000 in September, well above the 815,000 Briefing.com estimate and the revised 801,000 estimate in August. (Source: “Housing Starts,” Briefing: Investor, last accessed November 13, 2012.)
Leong reports that homebuilders like Toll Brothers are continuing to deliver better results.
“Revenues at Toll surged 40.6% year-over-year. The backlog of homes surged to 2,559 units, up 44% year-over-year,” states Leong, noting that the stock also beat consensus earnings estimates in its fiscal third quarter. (Source: “Toll Brothers Reports FY 2012 3rd QTR and 9 Month Results,” Globe Newswire, August 22, 2012, last accessed November 13, 2012.)
According to the Profit Confidential expert, at this juncture, the housing market is looking brighter. He concludes by advising investors to take some money off the table after the run-up in the housing market stocks if they own some of the hot homebuilder stocks.
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%.
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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.