“The reading was a bit
soft but much better than what we saw earlier in the year, indicating that
housing starts continue to be relatively strong,” says Leong. “The building
permits reading of 812,000 in July was impressive, well above the 770,000
estimate and the revised 760,000 in June.”
In the article “U.S.
Housing Market on Much Better Footing,” Leong notes that this strong
reading indicates builders are expecting a good flow of buying in the housing
“Moreover, home prices,
representing another key piece of the housing market, are edging higher,” Leong
Leong highlights that the
S&P/Case-Shiller index, comprised of the 20 largest U.S. metropolitan cities,
increased a better-than-expected 0.9% in June, representing the fifth straight
month of increases.
Leong also points out
that the marked improvement in the housing market is also showing up in the
results of numerous homebuilder stocks.
He reports that “Toll
Brothers blew away the consensus earnings estimates in its fiscal third quarter
after reporting $0.36 per diluted share, double the estimate of $0.18 per
In the article, Leong
does note that there are still some concerns towards the housing market; however,
he expects housing to continue to improve, especially if the jobs market can
Profit Confidential, which has been published for over a decade
now, has been widely recognized as predicting five major economic events over
the past 10 years. In 2002, Profit
Confidential started advising its readers to buy gold-related investments
when gold traded under $300 an ounce. In 2006, it “begged” its readers to get
out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to
predict that the U.S. economy would be in a recession by late 2007. The daily
e-letter correctly predicted the crash in the stock market of 2008 and early
2009. And Profit Confidential turned
bullish on stocks in March of 2009 and rode the bear market rally from a Dow
Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a
gain of 99%.
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