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Home Prices

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 clear: I don’t expect the U.S. housing market…

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 the first year home prices decline since our…

As we progress to the end of 2014, my skepticism towards the U.S. housing market increases. In fact, the fate of home prices in 2015 is in question. I don’t expect an outright collapse of the housing market like the one we saw in 2007, but I see…

The S&P Case-Shiller 20-City Home Price Index, a measure of the housing market in key American cities, declined in May by 0.31% from April—the first monthly decline in home prices in 27 months. (Source: Federal Reserve Bank of St. Louis web site, last accessed July 30, 2014.) The…

The U.S. housing market is in trouble again, and as crazy as it sounds, it won't surprise me to see home prices decline soon. Here are three reasons why: Existing-home sales have been declining since July of last year. The annual rate of existing-home sales in July of…

Looking at the current state of the U.S. housing market, one could say, “It’s the perfect time to buy a home.” Mortgage rates are historically low. Home prices are still down significantly from their peaks in 2006. But unfortunately, potential homeowners are not coming into the housing market.…

The housing market that lured institutional investors in during 2012 and 2013 is showing signs of cracking. Before I go into more detail, you have to keep in mind that affordability is the key to the housing market and affordability for housing only increases once home buyers’ wages…

I have been saying this for a while: You can’t have a housing recovery unless actual home buyers are involved. We are very far away from seeing the housing market reach its 2005 highs…and as time passes, it becomes clearer that this generation may never see them again.…

New York City is a colossal urban jungle, but what strikes me is the surging housing market rental prices in not only Manhattan, but also the strong price appreciation in the borough of Brooklyn. Average home prices peaked around $550,000 in early 2006, prior to a steady decline…

The chart below is of the S&P Case-Shiller Home Price Index, an index that tracks home prices in the U.S. housing market. As the chart shows, from their peak in 2007 to their low in late 2011, U.S. homes prices fell by about 30%. Since then, prices in…

Just as the majority of Americans think the U.S. jobs market is improving, there’s a notion in the air that the U.S. housing market has rebounded and is healthy again. I don’t believe this to be true. Just like the government’s official unemployment number is manipulated because it…

Will the gains that the U.S. housing market made in 2012 and 2013 continue into 2014? As you’ll read below, the biggest threat to the housing market is moving in the opposite direction—against housing. Sure, the Case-Shiller S&P Home Price Index, which tracks prices in the U.S. housing…

An old friend walked into my office the other day and told me I was dead wrong about the stock market being overvalued and overbought. “Michael, it looks like key stock indices can go even higher next year.” His reasoning: the Fed won’t stop printing and that means…

The news headlines are saying the U.S. housing market is witnessing robust growth and flipping homes for profit is back. While many are now saying there is growth in the U.S. housing market and that it will continue, I disagree with them, based on many different factors…all of…

Let’s face it: the U.S. housing market is still under severe stress. No matter how the bulls may spin their argument, it’s far from a real recovery. The historical fundamental factors behind a typical housing market recovery are still missing. According to real estate information company Zillow, in…

Boy, has the Federal Reserve ever created a monster with its monetary policy of creating $85.0 billion a month in new money out of thin air! Consumer confidence is anemic in the U.S. economy as Americans are being financially “squeezed.” Consumer confidence, which is missing in this so-called…

We are told by the “gold bears” that we are headed for a period of deflation ahead, so we should sell gold bullion because it doesn’t have any purpose in your portfolio. But these “gold bears” might be surprised to know that inflation in the U.S. economy is…