by Dave Kranzler, Investment Research Dynamics:
Every new apartment building in Denver is now offering one month free as a move-in incentive; some buildings will give you two months free if you push them. There are at least 12 new big buildings in central Denver in various stages of construction. – Investment Research Dynamics
Housing starts plunged 11% in May LINK. Ironically, this comes a day after the National Home Building Associating reported huge jump in homebuilder “sentiment.” Let’s remember, “hope” is not a valid investment strategy.
This housing starts number is about as bearish as it can get for the new construction market. It is also consistent with my detailed research which shows that homebuilder companies have accumulated an all-time high level of inventory, despite a unit sales run-rate which is about 60% below the previous all-time high in inventory back in 2005:
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