The Wall Street Journal blared about the home sales rebound. Look at the data:
Yes, sales rebounded in March, from February’s stunningly low pace. But the trend is still down. Even more frightening is the inventory of unsold homes piling up:
That’s the highest number since . . . well, we don’t know, because the government didn’t start collecting data until 1963. But this is certainly the highest in 43 years, and probably all time. The prices at which the new homes sold was also down. So here’s more evidence that the housing market is turning down.
Business Strategy Implications: Companies in the home construction supply chain should plan on a sharp reduction in business for the next two years.