Realtor.com reported today that the housing inventory fell by 5.6% month-over-month in January and is down 16.5% from one year ago. This puts the total inventory at the lowest level in 11 years.
In a separate report, RealtyTrac showed foreclosures falling by 11% in January and they are down 28% from last January.
The reports show 2 bright spots. A drop in inventory even if met with stagnant demand should lead to higher home prices based on simple economics. Then there is the fall in foreclosures that will help remove the homes exchanges hands and below market values. The combination of the two reports show the continued bottoming process in the nationwide housing market.
Is it time to buy into the housing stocks?
We had recommended the iShares Home Construction ETF ($ITB) a few months ago in our ETF Bulletin and it is up over 40% and one of our big winners!
I still see more upside in the housing sector with ETFs and stocks. Also more upside in certain REITs.
A stock I discussed in a blog post yesterday ($SBY) may be one to watch.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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