RE and economic charts: Why the housing bulls are wrong = four reasons by housing is still not a good investment.

Monday, November 22, 2010

Why the housing bulls are wrong = four reasons by housing is still not a good investment.

[mEDITate-OR:
not corral your thoughts around The Truth...

The 1st chart shows U.S. that home formation has been declining, even in spite of the housing bubble. And, has collapsed off the charts now.

The 2nd chart shows U.S. that the supply of homes waiting to be re-sold is increasing dramatically. And, as they point out this chart does not include the "shadow inventory".

Today, CoreLogic - in the article below, tells U.S. that the "shadow inventory" is now over 8 months supply. THAT is on top of this graphs numbers.
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In the 2nd articles 3 graph we are told this:
household net worth has plunged by $12 trillion since the bubbly days of 2007.
That's decline almost 10 times as large as the net worth increase spurred by this fall's QE2-inspired stock market rally
So, if you don't quite feel as well off as you thought you were
you are too far right.