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Housing rebound in sight!
Monday, July 07, 2008
There it is! Right on the front page of Yahoo from none other than CNN/Money.com so it must be true. The bottom in housing will soon be here and you know what that means...
The link is to this article (from either CNN/Money or Fortune) that cites the recent plunge in housing starts to 17-year lows as clear evidence of the bottom sighting.
Well, this may turn out to be a bottom for homebuilders, and real estate agents may even see things pick up a little bit, but as far as home prices go, don't count on any rebound anytime soon.
There's that little problem of inventory to deal with and, as noted here many times before, until the months of supply statistic comes down from its current freakishly high levels, don't look for any rebound in home prices.
Why does the mainstream media continue to write such stupid things?
This one seems to have been a case of a Yahoo! headline writer getting a bit too excited after reading a story that talked about an eventual bottom in housing.
Maybe the Yahoo! staffer just had his or her HELOC frozen and thought they'd do what they could to help stop home prices from falling any further in order to facilitate an "early thaw" on their source of overconsumption.
3 comments:
Please don't expect or suggest MSM (Main Stream Media) reporting. It usually is always wrong and provides definitive signals. This clearly indicates housing has NOT bottomed. Otherwise investors had to dig more data to conclude the same thing. The bottom will come when MSM stops writing any articles about housing.
"Why does the mainstream media continue to write such stupid things?" Because rather than conduct their own analysis, they rely on biased "experts" to tell them what is going on. Makes their jobs easier... even though they lose credibility.
I probably ought to have my head examined for reading the article this closely, but did you notice her comment about homes in Victorville. Talking up the value, she wrote that a 3800 SF home used to sell for $328,000 but that stripped down models at half that size now sell for $220,000. Let's see that's $86 a foot back then and $115 a foot now. Who says prices are falling?
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