This is a really fascinating slice, via David Rosenberg, of the latest Michigan consumer sentiment data.
It shows the percentage of respondents who think housing is a good investment.
Two things stand out.
- First of all, and this is the bullish part, we’re obviously near rock bottom. If you’re a contrarian, the fact that basically nobody thinks housing is a good investment has to be a positive sign.
- Also, what’s striking is that the number peaked at 24%, which is way lower than we would have expected. With homeownership peaking near 70%, and housing serving as a national obsession, the peak seems surprisingly modest, suggesting that through it all, most Americans didn’t see their home as an investment (not that that saved us at all… what we had was still horrible).