Top Ticking Real Estate is Different Than Stocks

Nice pair of charts from Northern Trust that show even as sales slow down:

Single_family_home_sales

Prices still remain relatively robust:

Median_sales_price_single_family_homes

That may seem counter intuitive to equity traders; when you top tick a stock, its all down hill from there. But the money flow, finacing and resistance levels are different.

Except for first home buyers, top ticking on a buy  also implies top ticking the sell, too. A buyer into a over priced/high priced market is also a seller into that same pricey market.

Indeed, rolling a few $100k out of one overpriced home — and into another — is very different than buying Google at $460 or Apple at $83 . . .

>


UPDATE January 26, 2006 2:29pm

So I post this on the way out the door to a lunch meeting, and then in the cab on the way, I immediately think of exceptions: First time buyers, speculators, builders/developers,  etc. 

But that still leaves somewhere between 50 and 75% or so of buyers as simultaneous sellers also.

In my mind, the significance of this is that the Real Estate may slow down in a slow motion fashion also.

>

Source:
Housing Market Is Certainly Cooling Down
Asha Banglore
Northern Trust, January 25, 2006 

http://tinyurl.com/975oe

Category: Investing, Markets, Psychology, Real Estate, Trading

The Perils of Forecasting

Category: Financial Press

Equity Extraction Fades, What Happens As As Home Sales Slow?

Category: Economy, Real Estate, Retail

Hot or Not? Sector Analysis and the Tipping Point for Oil

Category: Commodities, Markets

Earnings Continue to Soften: J&J

Category: Earnings

Crude Production by Country

Category: Commodities

Oil and the Markets

Category: Commodities

Ritholtz on The Daily Show?

Category: Financial Press

AP Blows Story on Digital Music

Category: Music

LEIs Continue to be Worthless

Category: Data Analysis