According to George Leong, contributor to Profit Confidential, while home prices continue to slide across the nation, there have been improvements in the homebuilder sector.
An improving economy and some job creation are helping to attract buyers to the housing market and the hope is that prices will advance higher, says Leong.
In the article Homebuilder Stocks Show Improvement, But Stay Selective , Leong notes that builders are seeing higher demand down the road in the housing market, which is positive.
The key Building Permits reading, which shows how well the building pipeline is doing, is also improving, says Leong.
Leong believes we are witnessing some stalling for the SP Homebuilders Select Industry Index. While the index has been trending higher, we need to monitor the break at the 50-day moving average, says Leong.
Should the employment problem and the eurozone crisis escalate, Leong believes there could be additional moves down to the 200-day moving average.
Distressed prices in the housing market remain problematic, says Leong
One things for sure; the homebuilder market has bottomed out, concludes Leong. He believes the influx of foreign buyers to the U.S. housing market from Brazil and Canada buying real estate in Florida and other depressed regions will help stabilize prices.
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 Lombardis 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.
