Friday, May 9, 2008

Big News On Housing

Wow. It looks like the falling prices in housing are actually bottoming. How would I know this? Because, like Barry, I believe in contrary indictators:

Economist David Lereah was once the housing market's biggest cheerleader. Now he says the bust isn't near over, and home prices still have a long way to fall.

"We're not at the bottom," he says. "[People] want it to be near the bottom, but we're not there yet. The leading indicators are still very bad. Pending home sales are still in bad shape. Mortgage applications are low … There's still supply out there in abundance … This thing is going to get worse before it gets better."
This guy is the economist for the National Association of Realtors. He's been wrong in every prognostication on housing for years. So to me, this is proof that the bottom is very near if not in.*

*Barry cites that Lereah is still recommending people buy now and that obviates the bottom call. I disagree. I think Lereah would be fired if he didn't say now is a good time to buy. His statement is about as close to the edge of termination that he could get.

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