Wednesday, January 9, 2013
Inventory has continued to decline.
The apartment vacancy rate has continued to decline.
Home building and other housing related stocks as represented by the XHB have continued to make new highs (new 52 week high today).
So it looks like all the positives which manifested themselves in 2012 are alive and kicking as we enter 2013. Additionally, we got through the supposedly scary election, (some of) the fiscal cliff issues, and we got another year extension on the short sale rules which allow sellers to conduct short sales and not be hit with an IRS bill for the discharged debt amount. The banks are reaching additional mortgage settlements as they extinguish the last of their legacy liabilities from the bubble. Finally, and potentially most importantly, the average person knows the crash is over, is tired of paying ever higher rents, and is no longer looking at real estate in a negative light.
I might actually not be bullish enough as all signs are pointing towards a strong 2013. We'll see in a few months how things are shaping up. The market is still essentially in hibernation for the next month or two.