Just so you are not hearing the bear side of the housing market story from me, Seeking Alpha published an article today from another analyst who is seeing the same fundamental problems with the housing market as me: The Housing Market Looks Like A Short.
This followed my analysis of the existing home sales report published by Seeking Alpha yesterday. As I show in my detailed report, Monday’s existing home sales report, for all intents and purposes, was not any indication of any sales growth in the housing market: Existing Home Sales Miss Street Estimates – Underlying Data Still Bearish.
The problem endemic to the housing market is that more workers are leaving the labor force every month than are finding jobs. The preponderance of jobs taken are part-time, low wage positions. By the Government’s own data reports, 90% of the labor force that is working has been experiencing declining wages ever since QE began in early 2009. Real median monthly household income is lower now that it was in 2007. The average American can not afford to buy a home and that’s why the first-time buyer is becoming extinct.
As I will show in my analysis of new home sales, the Government’s housing reports are as phonied up as every other other economic metric the Government and Wall Street reports.
The homebuilder stocks have now given up almost all of their short-covering driven spike up yesterday after the fraudulent new home sales report was released, despite the fact that interest rates are lower today (click to enlarge):
Please note the surge in sell-volume at today’s open. The hedge funds are loaded up on the sector and they have no options left except to start selling once the fundamentals get ahold of the stocks. It will be a bloodbath.
My homebuilder short sell reports offer a unique opportunity to readers to make a lot money shorting this sector. There are no reports available from Wall Street that go into detailed analysis like my reports do.
Perhaps this sums it up best – TOL insiders are dumping shares (source: nasdaq.com):
What better proof of the truth behind closed doors than insiders dumping their company’s stock? Questo dice tutto – That says it all!