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.