Today’s housing news contributed to the market route but I don’t think the number were as bad as some people think. Sales of existing homes were still up 9.6% from last year, and although they were down sequentially, inventories are low limiting sales opportunities. It is going to be a tough slog especially with all of the drama and concerns over Europe, and its impact on the U.S economy. Many buyers who couldn’t buy quick enough in a rising market, are going to try and pick a bottom that has likely already passed. As confidence and employment improves, housing prices will pick up with greater ferocity. Their is huge pent up demand that I believe people are underestimating, as a whole generation of first time home buyers experienced a trauma which has impacted their buying decisions, but hormones are hormones and eventually houses will be bought. It is all a function of supply and demand.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.