Tonight, I will be on the Kudlow Report at about 7:20pm to discuss the next leg down in Housing. As noted earlier today, Housing data was weak, falling 2.2% from April. And now that the Tax incentive is over, expect more downwards pressure.
The 3 most important things to note about Housing:
1. Prices remain historically elevated;
2. Shadow inventory — flippers and investor purchased homes — still lurk out there by the millions;
3. We are likely looking at another 5 million more Foreclosures . . .
As I have argued in the past, this will be healthy, cleansing thing. Painful, but ultimately healthy.
I don’t think I have been on the show since October 2009.
Video is here