I’m a regular reader of Mark Hanson’s blog.
In Mark’s recent post, he elaborates on recent RedFin data that points to a luminous sign in the housing market.
The chart below, taken from the Hansen blog, shows the Feb 2019 y/y price growth – or should I say shrinkage – that has occurred from Feb 2018.
The only regions that did not have a negative impact were the 13 areas listed at the bottom of the chart.
The most alarming was San Jose, CA which had a negative 45.40% change. Fresno and San Francisco, CA trailed San Jose.
The national deceleration was a negative 8.20% decline which should be alarming to the entire US home-building industry.
Some think this decline is due to millennial buyers being much poorer than the “experts” on CNBC thought. Others say it is due to Boomers staying in the current residences longer than expected.
Either way, a deceleration of this magnitude is alarming.
I would expect any home-building name such as D.R. Horton and its peers to follow suit. Home Depot might even be next.