The famous Case-Schiller index of housing state paints a dismal picture. According to them we have hit a double dip.
I was listening to my friend Jim Kramer of mad money and he had a very interesting view.
It turns out that the Case-Shiller index only uses data from 20 cities. Almost like only using the Dow Jones Index as the only way to decipher stock trends.
Just like the Standard and Poor 500 Index is a more telling indicator, for stocks, the FHFA index is a more reliable housing index. According to them prices were unchanged from Nov To December and no double dip.
In addition, Kramer pointed out that the NAR shows prices up 12.3% in Dec– the 5th straight month increase. According to them, inventory was down4.2% and pending home sales were up 3.5 %.
Lastly the census bureau track s home data and they showed the average price up 12%.
Just as the stock market is usually a 6 month leading indicator of the economy, keep in mind that housing related stocks are going strong also.
So who should you listen to? If you only pay attention to headlines, you are going to be the last in line to see trends. Guess what– if you listened to the news media in 2005, you got clobbered.
The economy is rolling along and inflation is coming back and so are interest rates. BUY NOW!!!