The authorization of building permits is a leading indicator for the housing market. As you can see on this chart, the new private housing units authorized by building permits move first, while the house price index moves several months later.
This way, you can predict the direction of the real estate market.
On June 2013, the direction of the housing market is clearly upwards.
When the new supply of houses finally hits the market, the housing prices come down.
House prices come down when supply exceeds demand.
Geen opmerkingen:
Een reactie posten