prices at these levels. We have to wait for them to come down before we're ready to start transacting again. It could mean something as simple as home building companies are getting worried about the environment. So they're putting less supply on the market. They're building less homes. So there's less available to transact. Whether it's supply or whether it's demand, people always ask me, it doesn't really matter because the impact of the economy is in the aggregate activity. It's in the volume of transactions. If there's less transactions going on, you think about a new home and this is why housing is a longer leading indicator. If a new home gets sold, you have to build it. You need labor to build it. You need to order raw materials to build it. And then once the house is built, somebody moves into it, then what happens? Somebody needs to order new furniture. They need to order new appliances and that comes up as new orders and that is exactly where we move from longer leading (36/57)
You are viewing a single comment's thread from: