More Good News About Housing
The economy continues to struggle in many respects, but housing has been one bright spot in recent months. The S&P/Case-Shiller numbers for October were announced today and they provided more evidence that demand for existing homes is strengthening. The 20-City Composite Index showed only a slight rise in prices from September to October, but prices were up a robust 4.3% on a year-over-year basis. They are up 5.4% from the low set in January 2012.
Of course, much of the demand is coming from investors who see an opportunity to buy homes at rock-bottom prices. However, a good portion of the demand is coming from genuine would-be residents. After all, there is a lot of pent-up demand. Furthermore, housing is closely tied to employment. People don’t rush out and buy homes if they think they might get laid off in the near future. Keep in mind that the numbers released today are lagged by two months so we don’t really know how good (or bad) the housing market was in November and December. Yet I can’t help but get a bit enthusiastic about the employment market and the overall economy based on these latest results. Now if we could just get our fiscal house in order, 2013 could turn out to be a pretty good year.
Vahan Janjigian is Chief Investment Officer at Greenwich Wealth Management, LLC, a SEC Registered Investment Adviser, where he manages portfolios for clients in separate accounts. Dr. Janjigian is a former Forbes magazine columnist and former Editor of the Forbes Special Situation Survey. According to Hulbert Interactive, his stock picks returned more than 18% annually during one of the market’s worst 10-year periods.
Dr. Janjigian holds the Chartered Financial Analyst designation and has earned degrees in general sciences and finance from Villanova University and Virginia Polytechnic Institute and State University (Virginia Tech). He previously served on the faculties of several universities, including the University of Delaware, Northeastern University, the American University of Armenia, and Boston College, where he taught courses in corporate finance, financial theory, investments, accounting, and economics; and he currently teaches a seminar on equity investment management to business executives in Singapore through Baruch College’s Zicklin School of Business. Dr. Janjigian has served as an expert witness on matters involving portfolio management, churning, suitability, and hedge fund manager compensation.
Dr. Janjigian has published his research in numerous scholarly and professional journals; and has been quoted in many leading newspapers and magazines, including Barron’s, Forbes, The Wall Street Journal, and USA Today. He appears as a guest commentator on various television and radio networks, including Fox, CNBC, MSNBC, and CBS Radio. Dr. Janjigian is the author of Even Buffett Isn’t Perfect (published by Penguin) and co-author of The Forbes/CFA Institute Investment Course (published by Wiley).