Wisdom Homes of America Inc (OTCMKTS:WOFA) was a notable outperformer during Tuesday’s trading session, surging by 62% on heavy volumes, which were 13 times the 30 day average turnover. Bears seem to be in total control as the stock continues to form lower tops and lower bottoms. The price action seen during the session is indicative of first signs of the stock forming a near term bottom at levels of $0.0007, which is a positive. The RSI oscillator is showing first signs of a bullish reversal. Wisdom Homes currently trades below all important moving averages and faces resistance at $0.0017.
Wisdom Homes of America Inc (OTCMKTS:WOFA) witnessed an upsurge in its stock as a number of housing experts indicated growth in home prices. One of the recent reports published by researchers at CoreLogic noted that the housing prices have registered a growth of 6% over the last one year. Also, the researchers hold the view that the growth in the house prices is likely to continue during the next year.
Home prices to grow
CoreLogic has outlined five factors that will impact the housing market during 2016. First of all, the researchers anticipate the Federal Reserve to increase policy rates by around 1% before the end of 2016. Such a hike will increase the cost for new fixed-rate mortgage borrowers and is likely to push the mortgage interest rates to nearly 4.5% by the end of the next year.
Secondly, CoreLogic estimates the new households to grow by over 1.25 million in 2016. It projects that most of the new households will seek for rental spaces during the year. The third factor accounted by CoreLogic relates to strong rental housing demand in 2016. The experts are of the view that the rental vacancy will remain low during the year while the rent payments will grow by a faster rate than inflation.
The fourth factor noted by CoreLogic experts is that the owner-occupied housing market will remain robust in terms of both sales and prices. It projected the home prices to accelerate in the range of 4% to 5% in 2016. Lastly, the firm anticipates a decline in single-family homes and growth in multifamily properties. It added that the home equity lending could see a rise but expect a fall in refinancing.
The stock price of Wisdom Homes of America Inc (OTCMKTS:WOFA) rallied up by more than 62% to $0.00130 on account of positive home price growth. The report from CoreLogic has further boosted the outlook for home retail companies.