I read a Wall St Journal article that was headlined “Vacant Homes For Sale Cloud Economic Hopes; Data Pointing to Glut Are Worst in Decades; Impact of Speculators.”
I could say the same for stocks. Too many traders are ignoring today's reality.
In the U.S., the housing market has hit a vacancy rate of +2.7%. Before 2006, this number had never been higher than +2.0%!
I don’t know about you, but I can’t see so many empty homes. The ones I see are occupied – like they have been for many years. What’s happened, I surmise, is that recent construction projects are going unsold with maybe 30-40-50% empty! Otherwise how could the national homeowner vacancy rate be +2.7%?