Article Index
U.S. Housing Market

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 market is headed for trouble. Homeownership in the…

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.) In July, total existing home sales increased two…

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…

The U.S. home-building industry has taken off this year to its best two months in more than seven years as it heads into summer. However, it began work on fewer houses in May following an April surge. On Tuesday, June 16, 2015, the Commerce Department reported the housing…

On Thursday, May 21, the National Association of Realtors released its report on existing home sales in April. Total existing home sales declined 3.3% to an annual rate of 5.04 million units in the U.S. (Source: National Association of Realtors, May 21, 2015.) April’s existing home sales are…

The Federal Reserve is expected to raise interest rates in September. When this happens, I expect the U.S. housing market to become one of its first and biggest victims. You must remember that the housing market and interest rates have a negative relationship. If interest rates rise, home…

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…

In its revised estimates of the gross domestic product (GDP) for the second quarter of 2013, the Bureau of Economic Analysis (BEA) reported that the U.S. economy grew at an annual pace of 2.5%, up from its previous 1.7%. (Source: Bureau of Economic Analysis, August 29, 2013.) GDP…

The average American Joe isn’t participating in the U.S. housing market. As a matter of fact, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, investors purchased 69% of “damaged” properties in April 2013, while first-time home buyers accounted for only 16% of “damaged” purchases. It is very…

While mainstream financial and a growing number of economic forecasters focus on investors fleeing the gold bullion market, I am following in the footsteps of central banks around the world… Investors pulled out a record amount of money from gold bullion-backed exchange-traded funds (ETFs) this past February. A…

There just isn’t enough real economic growth out there for a rising stock market—at least not much more than has already been achieved. News from the Federal Reserve of the central bank considering how to end quantitative easing sent the stock market much lower, revealing just how artificial…

Would you lend money to a person who is unemployed, whose assets are declining, and who is heavily in debt? Even a person with minimal knowledge of finance would say, “No, thanks.” But, the opposite of this happened in the U.S. economy on January 23, 2013, when Congress…

Here’s the bottom line on the U.S. housing market and why it’s not really a recovery we can bank on: The most important part of the U.S. housing market—first-time homebuyers—is missing from the action! We need first-time homebuyers in the market to see real growth in the U.S.…

Developing countries are supposed to be the fastest growing world economies. Sadly, according to a recent report by the World Bank, in 2012, developing countries put in their slowest economic growth rate in a decade. Developing countries saw their economic growth come in at only 5.1% for 2012.…

The U.S. housing market is becoming a main topic again in the mainstream media these days. I keep reading about how rising home prices will now get the U.S. economy going again. The National Association of Realtors (NAR) expects average existing home prices in 2013 to be around…

The stock market is very much in consolidation mode, and it’s still highly vulnerable to all the risks out there. The sovereign debt crisis isn’t over; the eurozone has just backstopped sovereign debt with additional debt. And while the U.S. housing market is showing signs of improvement, this…

Before the U.S. elections, there was hype about the housing market getting better, the stock markets soaring, and unemployment decreasing. But truth be told; there is no growth in the U.S. economy. As they say, the “devil is in the details.” The numbers only look good on the…

The stock market is not looking that good right now. There have been plenty of days where the main stock market indices start out strong, but the price action dwindles by the end of the day. The “AGA” stocks, which are Apple Inc. (NASDAQ/AAPL), Google Inc. (NASDAQ/GOOG), and…