Real Estate Indicators: April 2010

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 |  Includes: FTY, GRI, IYR, SPY, WREI
by: Francois Soto
Real Estate Indicators
  • Housing is the most important component of consumer net worth and one of the main driver of future consumption strengh. Consumption can weaken if real estate starts deteriorating again.
  • There is still an excess of Existing Homes For Sale (6). For Housing Prices to keep increasing from their low levels, monthly Home Supply must fall but it has instead increased to 9.2 months (1).
  • Unfortunately, Existing Home Sales declined swiftly to 5.02 million in February as government housing subsidies are coming to an end but Pending Sales increased to 97.6 for same period (4).
  • Although loan delinquency may decline soon, foreclosure rate is likely to stay above 11.7% (5).
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Disclosure: No positions