• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 1 hour Boring! See Ya Clowns, And Have Fun In Germany
  • 54 mins China's Blueprint For Global Power
  • 1 hour Bloomberg: shale slowing. Third wave of shale coming.
  • 6 hours Crazy Stories From Round The World
  • 48 mins ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 5 hours the future
  • 2 hours 5 Tweets That Change The World?
  • 27 mins Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 24 mins USA Carried Out Secret Cyber Strike On Iran In Wake Of Saudi Oil Attack
  • 6 hours Climate Protesters Blocking Roads etc...
  • 41 mins Spain Is On The Edge...Clashes Between Catalonia And "Madrid"
  • 1 hour Leftists crying to make oil patch illegal friendly: 'Broken system' starves U.S. oil boom of immigrant workers: CONGRESS DO YOUR JOBS INSTEAD OF PANDERING!
Alt Text

Goldman: Automated Trucks To Cost 300k Jobs Per Year

The race for automated trucking…

Alt Text

Global Economy Throwing Up Red Flags For Oil

Investors are feeling increasingly gloomy…

Alt Text

Russia May Feel Pinch From Oil Cut Deal This Year

Russia’s central bank warned that…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

Here Comes the Double Dip in Housing

The great thing about the residential real estate market is that it floods us with tons of hard data. The bad news is that all of these tea leaves have again started pointing to a turn for the worse.

The monthly index published by the National Association of Home Builders has just been knocked for a big fall, plunging from 22 to 17 in June. The 2005 peak was at 72. The Standard & Poor's/Case Schiller National Price Index dove 3.2% in Q1.

U.S. National Home Price Index

RealtyTrac told me that bank foreclosures hit its second monthly all time high in a row in May at 93,777 homes, and we are nowhere near the peak.

They think that another 5 million delinquent mortgages will pile more homes on to the 3.1 million that banks have already grabbed. Existing home inventories soared by 11.5% in April.

Of course the big home builders, like DH Horton (DHI), Pulte Homes (PHM), and Lennar (LEN), have already figured this out.

Check out the chart below of housing starts for the last 52 years.

Housing Starts

The market has seen the greatest stimulus in history, massive tax subsidies for first time buyers, and mortgage interest rates at 4.7%-- 30 year lows. Despite all of this, new housing starts remain trapped at 600,000/year, a quarter of peak levels.

They are bracing themselves for a double dip in the housing market by keeping inventories at bare bones levels and conserving capital so they can live to fight another day.

The only positive is the one advanced by pitiful, almost embarrassingly apologetic, real estate agents that affordability is at a 30 year high.

It all confirms my argument that we are in a multi decade housing depression which has a long time to run.

The big question is: If real estate double dips, will it take the banks with them. Rent, don't own.

By. Mad Hedge Fund Trader




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play