Friday, June 1, 2018

Houston Housing Market Forms Bullish Double Bottom

(Click on the image to enlarge)
The Monthly Median Sale Price chart (top) shows a classic double bottom formation, with a bullish 'W.' The second drop (#13 - $213,216) remains in line with the first (#10 - $213,108), meeting the classic requirement that the second leg remains at or above the first. The trend becomes more bullish when the second reversal eclipses the first (#14 > #12). When this trend emerges, the traders (corporate and professional flippers) tend to move in. Both trendlines are confirming the strong market fundamentals. 

The normalized trend (bottom chart) is equally bullish as the reversal makes a higher high (#14 > #6), with an up-sloping sideways. More importantly, both trendlines are ignoring the Jan-18 drop, endorsing the ongoing reversal.

Note: This analysis covers the City of Houston, not the entire Harris County. 

- Sid Som, MBA, MIM
President, Homequant, Inc.
homequant@gmail.com

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