The U.S. housing market is very close to a bottom and there are already signs its improvement is giving a boost to the overall economy, JPMorgan Chase CEO Jamie Dimon told CNBC Wednesday. This is what I wrote yesterday in the EPJ DailyAlert:
The Case-Shiller housing numbers are out and they show U.S. single-family home prices were unchanged in January. I don't consider this a important data point, since the housing market is totally screwed up because of government intervention. If it wasn't for the intervention, the housing sector would have been cleared of overhead supply years ago. That said, once the overhang supply is cleared, housing prices like everything else are going to soar in price. If you are considering buying a house, now is the time, especially with interest rates are so low. Buy now and lock in a long-term fixed rate and you will be very thankful in three years. House prices will be way up by then as will be interest rates.
This is what Dimon said today:
I believe we’re very close to the inflection point. People look at prices that are still coming down but all the other signs are flashing green....the shadow inventory everyone talks about is lower today than it was 12 months ago. It will be a lot lower 12 months from now. Homes for sale are about half what they were four years ago. You could come up with a pretty bullish case. If the economy grows, housing gets better, quicker.