Home on the Range

AS I have been saying for awhile now, the housing market may have bottomed

From The Wall Street Journal....

WASHINGTON -- Demand for used homes rose a second straight month in November, a sign the housing slump might have hit bottom, while new data suggest growth on the manufacturing side of the economy....

...Existing-home sales increased by 0.6% to a 6.28 million annual rate, after rising 0.5% in October, the National Association of Realtors said. The back-to-back increases were the first since March and April 2005.

"As the housing market recovers from its correction, existing-home sales should be rising gradually during 2007 -- it looks like we may have reached a low point for the current cycle in September," NAR chief economist David Lereah said....

...The unexpected increase in resales followed a report this week of a pickup in November sales of new homes. Both sets of data showed home inventories declining.

....."We've entered a more sustainable period of home sales now, and we expect greater support for prices over time as inventory levels are eventually drawn down," Mr. Lereah said.....

.."Price drop is necessary to stir sales," Mr. Lereah said. "It is working. Sales are up. It appears we hit bottom."

Excerpts from Jeff Bater - WSJ Dec 28, 2006