A number of disconcerting trends are developing in the U.S. housing market that investors don’t yet fully appreciate. Real estate developers, particularly those building luxury homes, look like a risky bet.
In the video excerpt above, from our recent Housing Outlook institutional research call, Hedgeye Housing analyst Josh Steiner discusses a particularly worrisome development. The share of top-tier homes currently for sale in the U.S. that are cutting their asking price just spiked to the highest level since the Great Recession.
This is a leading indicator of further weakness, Steiner explains, and a “significant breakout” that doesn’t bode well for publically-traded U.S. homebuilders, particularly those leveraged to high-end housing.
Want more? Click here to read the six takeaways from our Housing Outlook conference call.