Can You See the Bottom?

Investors around Wall Street were acting positive yesterday.  Many of them rallied because they thought they could see the bottom in the housing market.

Investors have a unique perspective about things when they are at their worst that is a little refreshing.  They see ‘the worst’ or ‘the bottom’  as the beginning of improving times.  If we are at the bottom, there is no where to go but up!

Investors found a sliver of hope to line the dark clouds of the housing slump on Monday.

bottom-housing-marketInvestors latched onto the National Association of Realtors’ upbeat tone Monday, sending the U.S. stock market higher in direct contrast to the stark data in the report, which said that sales of single-family homes and condominiums dropped by 0.4% in January to a seasonally-adjusted annual rate of 4.89 million units, the slowest pace on record since 1999. Despite this dire news investors seemed optimistic that the housing market may be bottoming out and that the increase in loan limits could lead to a rally in home sales toward the end of 2008.

Surprise! Home Sales Spark Hope

I personally do not know if we have hit bottom yet, and I suspect that we have not.  California, Florida and other places such as that may have found bottom, but I suspect that many places that were less inflated, have not yet begun to correct.

Until they do correct or at least get real about home values the bottom of the pit may not quite be in site, but at least we can hear the pebbles hitting the bottom from our current perspective.

So who wants to invest in a tankless water heater first to raise the value of their home so that they can flip it?

That’s what I thought!

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