Wednesday, April 23, 2008

Housing Price Stabilization Nowhere In Sight

March 2008 existing home inventory data was released this week and for about nine months now we have seen inventories hover around a ten month supply, as shown by my updated chart below.

Without declining inventories (prompted by sellers reducing their prices to more reasonable levels) we will not see stabilization in housing prices or improved loan performance in the banking sector. So for anyone looking for housing market improvement anytime soon, it looks pretty bleak on a national level. After all, basic economics tells us that when supply far exceeds demand, prices fall.
.

Posted by Chad Brand at 8:22 AM

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)
Disclaimer: The content contained in this blog represents the opinions of Mr. Brand. Mr. Brand may hold long or short positions in the securities discussed in this blog, but such positions will be disclosed. All of the information contained on this site is believed to be accurate when published, but mistakes could inadvertently be made. This commentary in no way constitutes investment advice because a reader's individual investment goals and risk tolerances will dictate which investments are appropriate for them. This blog is meant to be one of multiple sources of information for readers to conduct their own research in order to make personal investment decisions. Be sure to consult an investment professional before acting on any information that is contained in this blog. If you do not have an investment professional to work with, feel free to contact Peridot Capital, which is a registered investment advisory firm and works with clients individually.

Copyright © 2004-2008 Peridot Capital Management LLC