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Economy , US Markets

A Troubling Sign for U.S. Real Estate Market

Here's what spiked 10.8% in June…

by Bob Stokes
Updated: September 24, 2019

It's easy to figure out why the big housing market crisis of about 10 years ago is a faded memory for many people.

This chart from the Fed shows that U.S. housing prices are higher than they were at the peak of the housing bubble in 2006:


Also, prices have climbed about 51% since the post-recession low.

So, it's not surprising that we have this recent USA Today headline (July 31):

Want to buy a home? These are the top 10 hottest housing markets in the country

The list is mainly made up of medium to smaller metropolitan areas where prices have increased significantly during the past year -- like Shawnee, Kansas and Boise, Idaho -- and ever heard of Goffstown, New Hampshire? That housing market is on the list too.

Yet, while the housing market appears to be robust, you should be aware of some worrisome signs that are beginning to appear.

Our current, September Elliott Wave Financial Forecast shows subscribers this chart and says:


Black Knight Mortgage Monitor reports that first-lien mortgage delinquencies suddenly spiked 10.8% in June, from an all-time low in May. In the second quarter, the national default rate on loans rose to 3% compared to the second quarter of 2018. As the chart shows, it was the first rise since the last housing crisis in 2009.

Another revealing chart in our current Financial Forecast shows you U.S. construction spending. Plus, the issue cites other rarely discussed evidence.

Over our 40 years in the business, we've observed that real estate and stocks tend to trend together.

So, when the stock market turns down, you can expect real estate prices to go south, too.

The question is, when might that happen?

You can see all the evidence for stocks and other markets we're showing subscribers right now, risk-free for 30 days. Look below to find out how to get started.

"The Time to be Bullish is Past"

That's a quote directly from the just-published September Elliott Wave Theorist -- and no -- it's not a reference to the U.S. stock market.

Yet, it is a reference to another widely followed financial market.

The chart of this market which the new Theorist shows is worth a thousand words -- and much more -- if you're an investor.

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