by Dave Kranzler, Investment Research Dynamics:
Despite the “bad weather” story line being promoted by Wall Street and the housing industry marketing groups (NAR, NAHB) – and which is being loudly broadcast by the media – the housing market is in trouble. What housing market perma-bulls are overlooking is that the fundamentals which support a healthy housing market are rotting away – quickly.
I wrote an article for Seeking Alpha which analyzed some of the factors which are causing an expected, non-seasonal/weather related decline in home sales. You can read my article here: Here’s How Housing Bubble 2.0 Becomes Housing Crash 2.0.
The recent release of existing home sales for February reaffirmed my analysis as the data showed that the first-time buyer segment – historically 40% of all home sales – declined to just 28% of all buyers, down from 30% a year ago.
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