Thursday, April 18, 2013

5 Irrefutable signs that real estate is still in recovery


In case you haven't noticed, I've been on a bit of a "data doesn't lie" kick lately. Yesterday, I employed over two decades' worth of numbers to debunk the negative implications regarding a plunge in bullish sentiment. On Friday, I used stats to put the sudden spike in Japanese government bond yields into perspective. And, of course, I also recently shared undeniable numerical proof that stocks are not overdue for a pullback.
Today, I'm staying on my data kick and setting my sights on real estate. Recall that, in April 2012, I shared 11 irrefutable signs that the real estate market had officially entered recovery mode. Let's see what the data tells us this year…
Nothing to Fear
There's no denying that homebuilding stocks have been on a tear lately. Heck, the iShares Dow Jones US Home Construction Fund (ITB) is up 62% in the last year, compared to about 15% for the S&P 500 Index. Such an impressive run-up is making even faithful Wall Street Daily readers afraid that another housing bubble is forming.
It's tough to blame them, considering that there are plenty of stats flying around to embolden such fears. Like the fact that searches for "home values" and "real estate listings" in the last year are up 158% and 256%, respectively, according to Yahoo (YHOO).
But come on, people! Let's not put our faith -- or worse, our investment dollars -- in consumer Internet search habits. Instead, stick to the hard data coming out of the real estate market itself. When we do, it's clear that we’re nowhere near bubble territory.
Don't believe me? Then chew on these five stats:
Real Estate Recovery Stat No. 1: Timmmmmmber!
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