Friday, November 25, 2011

Will the Market lead Housing..

As I noted in previous posts, our stock market has been leading house prices..

The market topped in April and our home prices peaked in May. So we would seem to lag the stock-market by a month or so as you will see from Larry's excellent chart

In October the stock-market dropped and then rapidly rebounded and lo and behold, we had an unexpected bounce in our home prices. What now?

Well, we have had another shellacking in stocks in November. and the market is down 8% in two weeks. IF this relationship still holds we should see a dip in our prices too.