In the article "U.S. Housing Market on Much Better Footing," Leong notes that this strong reading indicates builders are expecting a good flow of buying in the housing market.
"Moreover, home prices, representing another key piece of the housing market, are edging higher," Leong points out.
Leong highlights that the S&P/Case-Shiller index, comprised of the 20 largest U.S. metropolitan cities, increased a better-than-expected 0.9% in June, representing the fifth straight month of increases.
Leong also points out that the marked improvement in the housing market is also showing up in the results of numerous homebuilder stocks.
In the article, Leong does note that there are still some concerns towards the housing market; however, he expects housing to continue to improve, especially if the jobs market can get going.
He reports that "Toll Brothers blew away the consensus earnings estimates in its fiscal third quarter after reporting $0.36 per diluted share, double the estimate of $0.18 per diluted share."
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it "begged" its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
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Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi's current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.