Two Wall Street Journal Articles Indicate Housing Market May have Hit Bottom

Two articles support GoToby.com call of a few months ago.

May 8, 2008 – Palm Coast, FL – Concurring with GoToby.com’s analysis, writers of two separate articles in Tuesday’s Wall Street Journal support the belief that the U.S. housing market may have reached bottom.

 

Cyril Moulle-Berteaux, managing partner of Traxis Partners LP, a hedge fund firm based in New York, bases his analysis on the declining inventory of new homes and fall in construction activity. "Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually," he says.   (article)

 

Click to enlargeIn the second article, Brett Arnends cites Wellesley Prof. Carl Case, a leading housing expert. Case illustrates that the number of new housing starts has fallen below 1,000,000 annually. For the past 50 years, that has signaled the bottom a recession.  "It’s bottom-fishing time, I think," says Mr. Case. "There’s got to be bargains in Florida, Arizona and Nevada."   (article)

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  1. George Meegan
    George Meegan says:

    Bottom is still a bit lower

    The fact that things are bargans does not offset the economic impact of the \”FUEL PANIC\” that the US is in. The lower and posibly lowest rates still aren’t as low as they have been. The settling of the prices of fuel must happen first, before real estate recovers.

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