Is the US housing market slowing?
Wednesday, August 9, 2006
Is the US housing market slowing?
Well Chris Puplava has some great graphic illustrations to prove his point in his Market Wrap:
The slowing seen in housing is beginning to trickle through the economy as real GDP in the 2nd quarter was only 2.5%, with GDP revisions reducing nearly 25 basis points from annual real GDP growth during the nearly five-year expansion since 2001. Here are a few further sources of a slowing housing market. Home sales are off 10% from their peak last summer, unsold inventories have soared to a new record, construction spending is decelerating after peaking in early 2004, and the national median home price has decelerated sharply from the peak seen in 2005 (see charts below).
Figure 3
Source: Dismal Scientist
Figure 4
Source: Asha Bangalore, The Northern Trust Company
Daily Global Commentary 08.07.2006
Figure 5
Source: Dismal Scientist
Figure 6
Source: Dismal Scientist
Homebuilder optimism has been falling for nine straight months, with July’s reading of 39 marking the lowest level since December of 1991.
Figure 7
Source: Dismal Scientist
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