wabmester
Thinks s/he gets paid by the post
- Joined
- Dec 6, 2003
- Messages
- 4,459
The stock market rallied on Friday after the GDP growth report was released. Kind of odd that we'd get a rally on slow growth, but the market seems to be so fearful of more rate increases from the fed, that everybody is ready to party when they think the increases are done.
Anyway, the report showed that the cooling housing market is cooling the economy. Several economic blogs posted charts that showed how slowing housing markets were predictors of recessions.
But what I found more interesting about the charts was that housing booms almost always start at the end of a recession. So, it looks like the timing signal to get back into real estate will be even stronger than the signal to get out.
Here's a chart somebody made back in January that shows this relationship (white bands show recessions):
(from this guy)
Anyway, the report showed that the cooling housing market is cooling the economy. Several economic blogs posted charts that showed how slowing housing markets were predictors of recessions.
But what I found more interesting about the charts was that housing booms almost always start at the end of a recession. So, it looks like the timing signal to get back into real estate will be even stronger than the signal to get out.
Here's a chart somebody made back in January that shows this relationship (white bands show recessions):
(from this guy)