3 More Charts That Support The Bull Case For Housing

There’s no question that optimism for a housing recovery has hit a level that we haven’t seen since the crash.

Late in December, WSJ’s Gregory Zuckerman reported that several big funds were betting on a recovery.

Meanwhile, the homebuilder stocks have been among the best performers over the past couple of months.

However the fact of the matter is that the data hasn’t been that good. New home constructions are still anemic, prices are still falling, mortgage applications are going nowhere, and so on.

So then…

In a note, Deutsche Bank’s Joe LaVorgna and Carl Riccadonna argue that the conditions are being set for a recovery.

These three charts from the report are all key.

First, more people are showing up to look at houses.


Photo: Deutsche Bank

And the fact of the matter is that housing affordability (a function of prices, interest rates, and incomes) is impressive.


Photo: Deutsche Bank

And finally, the industries that support housing (construction, architecture, etc.) are showing signs of life.


Photo: Deutsche Bank

These aren’t the numbers that will really get anyone too excited, but they do hint at something happening. And when you consider just the basic population/household creation needs, there are reasons to be happy.

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