Home Sales Tumble

Investment Analysis Clubs Saul’s Investing Discussions
1

http://www.cnbc.com/2016/03/21/national-association-of-realt…

Pracautionary prelude for LGIH?

Bob

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Home sales tumble

Hi Bob, If you read down the article they hypothesize that the reason is a tight housing market, not enough houses available for sale (only a four month supply of homes available against a six month supply being neutral and over a six months supply indicating an oversupply). They also talk about an improving labor market, etc. I wouldn’t get too upset about it if I was you.
Saul

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3

not enough houses available for sale

Thank for your comments. I read the message as not enough affordable houses available for sale, and that wage pressures were increasing.

Isn’t that a precursor of things to come?

Bob

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I read the message as not enough affordable houses available for sale, and that wage pressures were increasing.

This actually plays right into LGIH’s wheelhouse as they concentrate on entry level homes which will be as affordable as any out there. So if anyone is selling homes, it will be them, right?

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