Wednesday, August 26, 2009
New home sales are up over 30% from their lows, in yet another sign that the economy is improving. This, in combination with the more than doubling in the price of major homebuilders stocks from last year's low, constitutes strong evidence that we have seen the bottom in the housing market. All this activity also suggests that the combination of sharply lower prices and relatively low mortgage rates has created the conditions necessary to clear the housing market. Market forces have fixed the housing problem, and we can now move forward with more positive changes.
Posted by Scott Grannis at 10:11 AM