Housing Stock Indexes Continue To Fall
The chart below shows the performance of three U.S. housing stock indexes this year. They are all down YTD, with the Home Construction Index down the most (almost 25%). If the high in January is used as a reference level, then both the Home Construction Index and the Housing Sector Index are in bear market territory (given one defines a bear market as a 20% decline from highest close). To me, this performance is of great concern.
Disclosure: The analysis provided here is usually part of the analysis the author uses when he is designing and managing his investment portfolios.
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There are very few products that raising the price "some" will not reduce the sales "some", and housing is not one of those fortunate products. The builders chose to build the very expensive houses and the market was not there. Perhaps less greed would have lead to greater sales and adequate profits??