Sunday, July 8, 2018

Charlotte Housing vs. Denver Housing – Who Wins?

(Click on the image to enlarge)
The Charlotte housing market has started to turn around after a short and sharp decline. Obviously, the sharp decline in October (#10) was one-off (could be weather-related; aftermath of the two major storms). In fact, both trendlines, including the 2-Mo Mov Avg, are ignoring the large drop. Positively, if the market breaks out of the $235-$245K congestion in the near future, a new bullish trend will re-emerge.

After a rapid rise in home prices in early-to-mid 2017, the Denver market experienced a healthy consolidation for several months, following which the upswing resumed. Both trendlines are confirming the data line as well as the recent sharp reversal.The formation of the double bottom - though not a compact W - is quite bullish as well. 

The combination of sharp rise, healthy consolidation and formation of a double bottom support makes Denver a clear winner over Charlotte which is desperately looking for direction amid significant volatility.

- Sid Som, MBA, MIM
President, Homequant, Inc.

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