You might have missed this critical information…
And I don’t blame you. The mainstream media is great at generating noise.
But there’s something going on that you should be aware of.
And it confirms – again – my 18.6-year cycle.
Events are unfolding just as I’ve predicted.
Here’s what you need to know…
The Housing Market Is Back With a Vengeance
Mass media has been obsessed with “high” interest rates recently… with articles popping up almost daily about how bad they are for the housing market.
First, we need to get this straight: interest rates aren’t high.
They’re close to their historical average, which is about 5%.
Second, they didn’t kill the housing market.
Recent data from Bloomberg confirms that new home sales in the U.S. are soaring compared to the fourth quarter of 2022.
In some markets, they have doubled.
Home sales absorptions (which is a metric that tells you how many houses are sold relative to how many of them are available) are up 109% in California, 96% in the southwest, 71% in the northwest… the list goes on.
Better yet, sales absorptions are higher now than they were in both 2019 and 2020… and you may remember how crazy the housing market became when people were forced to stay home and suddenly realized they needed a bigger or better place.
Homebuilders’ stocks have responded well to a flurry of optimistic first-quarter results posted by publicly traded companies working in the sector.
D.R. Horton has outperformed the S&P 500 Index by 14.8 percentage points this year, while NVR Inc. delivered an 18.7 percentage point outperformance.
And this trend should continue. That’s what my 18.6-year cycle – which has been a reliable compass for me for decades – says.
Confirmation is everywhere… if you pay attention to the important trends.
We are in the late stage of the cycle, and the housing market is heating up.
As I said earlier this week, a flood of easy money into the system will only accelerate this trend.
Keep paying attention…
Editor, Cycles Trading with Phil Anderson
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