Have we reached the bottom?
Today’s lead story on BusinessWeek.com focuses on the stock market rally: equities are up 20% since the low.
But what about real estate, which dragged us into this mess in the first place? Are we near a bottom yet?
Keith Gumbinger (pictured right), mortgage guru at HSH, thinks a bottom is in sight. He points to home sales, which seem to be stabilizing. The Commerce Department said earlier this week new home sales rose 4.7% in February to a seasonally adjusted annual rate of 337,000 from an upwardly revised January figure of 322,000.
“For anyone looking for signs of the market bottoming, at the very least, the housing numbers for February show we’ve seen some lift for sales of new as well as existing homes,” Gumbinger says. “A change in pattern is a change in pattern. At least the early inking is that the pattern of decline has come to a halt.”
What other signs do you see to show that real estate is (or isn’t) bottoming out?