Monday, August 17, 2009

Housing hits a bottom, yeah right!!

Housing hits a bottom
Housing starts and sales expected to rise modestly in July

By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) -- Housing, which led the economy into recession, may be one of the forces that helps to pull it out of the ditch.
After 14 quarters of declining investment in homes averaging one percentage point of GDP per quarter, residential investments could actually add to the nation's gross domestic product in the third quarter, economists say.
No one expects a renewed housing boom. But at least sales and construction spending aren't falling any more.
Signs of stabilization abound:
Home builders are gradually becoming more hopeful, even though surveys show most builders are still very discouraged. The builders' housing market index has risen in four of the past five months.
Housing starts have increased in four of the past five months after tumbling to a postwar record low. Building permits for single-family homes have risen at a 109% annual rate over the past three months.
Sales of new single-family homes have risen three months in a row after falling to a record low in March.