Investing in Housing: A Good Idea of where Housing is headed, per Pulte
By Ian Cooper
Housing inventory is up 29% year over year with a current 6.5-month supply of new homes on market, with an 8.4-month supply of existing homes still sitting, according to ZipRealty.
Then ask yourself: How badly do homebuilders want to get rid of glut?
Try asking Pulte, for one, where a “Perfect 10 Sales Event” is offering up to 10% and up to $10,000 bonus cash in Phoenix, Arizona. In California, they’re offing up to $10 million in incentives (not sure what that means). In D.C., there’s a $10,000 off coupon offer, and up to a $10,000 off offer…
Or, ask the homebuilders with incentives of boating club membership, $5,000 in moving costs, and $5,000 worth of upgrades… I kid you not.
Now, tell me with a straight face that housing is turning the corner…
Add to that lower homebuilder confidence, and a drop in housing starts, which fell for the first time in about four months, indicating that our now infamous housing recession will continue. And don’t forget to add in higher average rates on 30-year fixed mortgages, which now stand at 6.74% driving away would-be buyers.
There’s no near-term recovery for housing… forget you even heard of a recovery. The bulls have this one wrong.
Take Care-
Ian L. Cooper
Death Cross Trader