{"id":434380,"date":"2010-03-16T09:45:00","date_gmt":"2010-03-16T13:45:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/davide-rosenberg-you-think-housing-is-recovering-check-out-these-charts-2010-3"},"modified":"2010-03-16T09:45:00","modified_gmt":"2010-03-16T13:45:00","slug":"david-rosenberg-you-think-housing-is-recovering-check-out-these-charts","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/434380","title":{"rendered":"David Rosenberg: You Think Housing Is Recovering? Check Out These Charts"},"content":{"rendered":"

David Rosenberg evidently agrees with Meredith Whitney<\/a> that you should be pessimistic about housing.<\/p>\n

He takes a look at the recent data in this morning’s Breakfast With Dave note<\/a>.<\/p>\n

The NAHB housing index dropped two points to 15 in March despite government
resources that have been expended to put a floor under the residential real
estate market.  This attests to the view that the problems to the sector are more
secular in nature than they are cyclical.<\/p>\n

\"chart\"<\/p>\n

Of major concern was the slide in the homebuyer traffic index, from 12 to 10 in
March — during the era of the green shoots last spring and summer, this
component surged from 13 to 17.  Only three other times in history has this
measure been this low. <\/p>\n

\"chart\"<\/p>\n

Prospects for sale activity over the next six months also declined two points to
24 in March and this subindex leads new home sales by six months with a 76%
correlation.  <\/p>\n

\"chart\"<\/p>\n

The S&P 500 homebuilding group has managed to rally 17% so far this year or a
1,400bps outperformance vis-à-vis the overall market.  There is scant a sector
that deserves such status when one takes the fundamental housing backdrop
into consideration.   <\/p>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n