Real Estate Analyst Jurow: Housing Market's in Trouble

Thursday, 28 Aug 2014 10:08 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
While some financial commentators got excited by last week's news that existing home sales rose 2.4 percent in July, evidence abounds that the housing market is slowing down.

New home sales fell 2.4 percent last month, the lowest rate since March. And the S&P/Case-Shiller index of home prices for 20 major cities slipped a seasonally adjusted 0.2 percent in June.

"I never bought into the idea that we had a [housing] recovery at all," real estate analyst Keith Jurow, author of the Capital Preservation Real Estate Report, tells MarketWatch. And he thinks home prices will keep sliding.

Editor’s Note:
Get These 4 Stocks Before 399% Stock Market Rally!


That's because the number of home listings is rising while prices start to slide. For example, listings have jumped 28 to 89 percent during the 12 months through June in Fort Lauderdale, Miami, Charlotte, N.C. and Riverside, Calif., he notes.

"If sales are weakening and listings are going up substantially, prices will fall," Jurow explains.

"Many people waited for prices to rise before putting their house on the market, and they have," he adds. "But now listings are increasing because everyone has the same idea. Unfortunately, May and June are traditionally the strongest months for sales, and these home sellers have missed the peak season."

Others agree. "We're seeing more inventories coming on line, which is putting downward pressure on prices," Anika Khan, senior economist at Wells Fargo Securities, tells Bloomberg. "In general, we have seen prices rise at a faster pace than the fundamentals would call for."

To be sure, not everything is bleak. "Other housing indicators [aside from the Case-Shiller index] — starts, existing home sales and builders' sentiment — are positive," says analyst David Blitzer of S&P Dow Jones Indices, according to The Wall Street Journal.

"Taken together, these point to a more normal housing sector."

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

Related Stories:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Meredith Whitney's Hedge Fund Reportedly in Turmoil

Saturday, 20 Dec 2014 11:43 AM

The hedge fund Meredith Whitney started last year after she became one of Wall Street's best-known analysts is in turmoi . . .

Yellen’s Patience Echoes Greenspan 2004 Run-Up to Rate Liftoff

Saturday, 20 Dec 2014 11:40 AM

Federal Reserve Chair Janet Yellen is taking a page from predecessor Alan Greenspan's 2004 playbook, a step that appears . . .

John Kasich 2016: 7 Key Political Positions of GOP Presidential Hopeful

Friday, 19 Dec 2014 22:22 PM

John Kasich has been involved in the national scene since the 1980s as a U.S. congressman and popular governor from Ohio . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved