Home prices have now reached levels that were last seen in late 2002.
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New York, NY (PRWEB) March 13, 2012
While some analysts and economists are saying that the U.S. housing market is getting better, Michael Lombardi, lead contributor to Profit Confidential, says it hasn’t hit bottom yet.
In his recent Profit Confidential article, "Hope in Housing? Our Indicators Say Prices Still Crashing," Lombardi says, “Home prices have now reached levels that were last seen in late 2002.”
Lombardi says that when he looks at the U.S. S&P/Case-Shiller Home Price Index, he can see it has dropped four percent in the fourth quarter of 2011, compared to the fourth quarter of 2010.
“This basically tells us that house prices fell another four percent last year,” says Lombardi.
Lombardi believes that, if the U.S. housing sector doesn’t recover, the economy can’t recover. “The S&P/Case-Shiller numbers reflect a consumer that is not experiencing real purchasing power or enough consumer confidence to buy a home,” says Lombardi. “This is not a sign of an economic recovery.”
Lombardi also highlights weak durable goods orders as continued evidence that the economic recovery and consumer confidence are nowhere to be found in 2012.
“Durable goods orders instead point to a slowing economy and weak consumer confidence,” says Lombardi.
Add to this the fact that gas prices have continued to rise, and Lombardi feels that this doesn’t bode well for consumer confidence or economic recovery going forward.
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.