Seeking Alpha

'Thunder Clouds On The Horizon' In Housing

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Includes: HOML, HOMZ, ITB, IYR, NAIL, PKB, XHB
by: Hedgeye
Hedgeye
Independent investing research, portfolio strategy, long/short equity
Summary

We have been bullish on U.S. housing since October 2018.

But history shows that it was right on the money. Incidentally, we still have a positive outlook on the U.S. housing complex for the rest of 2019.

"One of the reasons why, but certainly not the only factor, is that foreign demand for U.S. residential real estate has slowed down very significantly.”.

We have been bullish on U.S. housing since October 2018. We caught considerable flak for that contrarian call at the time. But history shows that it was right on the money. Incidentally, we still have a positive outlook on the U.S. housing complex for the rest of 2019.

That said, Hedgeye Housing analyst Josh Steiner explains in the video above that there are some ‘thunder clouds on the horizon’ stemming from falling home prices in some key metro areas and declining foreign demand.

Particularly on the west coast, in places like Seattle, San Francisco, Portland and Los Angeles, the deceleration there is pretty amazing,” Steiner explains.

"One of the reasons why, but certainly not the only factor, is that foreign demand for U.S. residential real estate has slowed down very significantly.”

Watch the video above for more.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.