If you want to take the temperature of the housing industry, the best place to go could be a car dealership.
Yes, you read that right. There is a strong correlation between the real estate market and auto sales – particularly when it comes to the most iconic American vehicle of all, the pickup truck.
Analysts at TD Economics forecast that trucks will be the “standout” light vehicle for the next two years after sales jumped 12 percent in 2013. That’s because pickups are the workhorse of the construction industry: As home building activity picks up, construction companies hire more people. Workers then buy trucks to get the job done.
As for the weak housing market in 1Q14? Analysts blame the terrible winter and expect housing construction – and pickup truck sales – to ratchet up once spring blooms. With our luck that will be some time in June.