Housing Market

The housing market is comprised of buyers and sellers of homes. Information on the housing market encompasses the supply and demand for homes as well as the inventory level of unsold homes. In markets around the country and different nations, you will have a natural progression of demand and supply. In some markets, there are new citizens moving to the city creating demand and, unless there is enough supply to match this demand, prices will rise. Income levels and mortgage rates also play a role in determining how many transactions occur in any given housing market.

The U.S. housing market has been on a steady rise since interest rates fell to record lows coming out of the Great Recession in 2008. With interest rates and mortgage rates continuing to be relatively low, and with the jobs market producing over 200,000 new jobs monthly, the ingredients are there for continued strength in the housing market.

Two of the most watched metrics in the housing market, Housing Starts and Building Permits, continue to be fairly strong, with over one billion annualized units for each segment.

While there is some stalling, the housing market will hold steady until mortgage rates begin to move higher; this could occur in 2015, when interest rates are estimated to rise.


With one month already behind us, moving further into 2016, the U.S. housing market looks like it’s on shaky ground. This could be the year when home prices decline—for the first time since 2011. Let me make my point very…

Canada’s Real Estate Bubble Is Jaw-Dropping Canada’s housing market is overpriced and the nation’s real estate bubble is due to burst at any moment. At least, that’s what we’re told. This message has been repeated so often that many Canadians…

There are three negative developments in the U.S. housing market, the U.S. economic ramifications of which we should be worried about. These developments are the collapsing homeownership rate, falling household incomes, and declining housing starts. They all suggest the housing…

I have written over and over again on how distorted the U.S. business sales and inventory figures are. Manufacturers are stockpiling products. Retailers are experiencing a decline in sales. Consumer spending is getting softer. But it’s more than just retail…

The U.S. existing home sales surged to an eight-year high. On Thursday August 20th, the National Association of Realtors published its report on exiting home sales for the month of July. (Source: The National Association of Realtors, August 20, 2015.)…

We are seeing momentum in the real estate market dissipate—this is something readers of Profit Confidential shouldn’t be surprised about, as I have been predicting problems ahead for the housing market. In fact, I won’t be surprised if 2015 is…

One of the nation’s largest home builders crushed market expectations on Wednesday June 24th, signalling that a housing recovery may be here at long last. Lennar Corp. (NYSE/LEN) posted strong second-quarter earnings of $0.79 per share, up from $0.61 during…

If you live in one of the top 20 metropolitan areas of the country, you have probably already witnessed a strong appreciation in your house’s value over the past several years. Based on my economic outlook for 2015, I believe…

In the month of May, the purchase of new homes in the U.S. reached its highest level in the last seven years, signaling that the housing market is recovering. Sales of new single-family houses beat analysts’ forecasts, up 2.2% during…

Ask any professional involved in the real estate market and they will tell you that when interest rates are low, it’s a great time to buy. Lower interest rates mean higher affordability because mortgage payments are smaller. In December of…

The chart below shows us that between April and August of this year, home prices in the U.S. declined. The S&P Case-Shiller Home Price Index is only released 60 days after each month’s end, so while data for September and…