Dow tops 9000 as home sales rise

[xyzzy]

http://finance.yahoo.com/news/Dow-to...n&asset=&ccode=

This tremendous rise in home sales surely must mean the housing bust is over. If you look at the following chart, you can see the proof that happy days are here again. There is no possible way that this line will not shoot upwards to infinity.



As if this weren't enough evidence for you, here's a graph of home sales for the past 12 years, conclusively proving the renewed strength of housing.

[btattoo]

Re: Dow tops 9000 as home sales rise

Yup, clearly housing is back. I'm going to call my mortgage broker and ask if he has any ARMs left.

[flintlock]

Re: Dow tops 9000 as home sales rise

Thank God its all over.

[thunderdownunder]

Re: Dow tops 9000 as home sales rise

Yep it blew through 9000 like Katrina through New Orleans.
Massive volume of shares traded so it looks like every ones back buying in on the "less worse than expected results."
200+ point rise - buy buy buy - Dow soon to be 30,000.

Talk about an inflated whoopy Pillow

Who needs Earnings per share, Return on capital employed,Diluted future dividend calculations, Price earnings Ratios, Discounted cash flow measures or debt to equity ratios. You just pick up a dart and throw it at a list of future rubbery figures to kick your share price higher. Thats how the professionals do it - Pros bro ( Thus giving Prostitutes a bad name)

[cindykimlisa]

Re: Dow tops 9000 as home sales rise

I have two relatives in the mortgage business. A big challenge of recent has been this: People with good credit are able to pay the selling price for a house but the appraisals are coming in too low and the deals are falling apart.

For example say the seller wants to sell for 250k and the buyer can pay $25k down and qualify for a 225K mortgage. But then the appraisal comes in for $230k. The seller won't sell that low and the buyer will not or cannot come up with the extra cash reqired by the bank as they will only do a mortgage after the appraisal for around 202K.

[nero3]

Re: Dow tops 9000 as home sales rise

I am pretty confident that housing is flattening out or rising.

It's in the homebuilder stocks it show as they pretty much reflect the market's view of all that other data, combined, it's no point in looking at the data and trying to be smart about it, studying the homebuilders is it. I have never seen such clear formations of bottoms as I see there.

Maybe the dollar will really fall through the floor. Maybe there will be a second round of house price gains, coupled with high inflation, and negative real interest rates as the trend of a stronger chinese yuan, that started from 2005, goes on further. Note the date, mid 2005. housing peaked, and the dollar had to drop. That is what happened. That's why gold have been rising so much since 2005, housing have been deflated through a weaker dollar. The CPI adjusted house prices is a joke.

[xyzzy]

Re: Dow tops 9000 as home sales rise

I am pretty confident that housing is flattening out or rising.

It's in the homebuilder stocks it show as they pretty much reflect the market's view of all that other data, combined, it's no point in looking at the data and trying to be smart about it, studying the homebuilders is it. I have never seen such clear formations of bottoms as I see there.

Maybe the dollar will really fall through the floor. Maybe there will be a second round of house price gains, coupled with high inflation, and negative real interest rates as the trend of a stronger chinese yuan, that started from 2005, goes on further. Note the date, mid 2005. housing peaked, and the dollar had to drop. That is what happened. That's why gold have been rising so much since 2005, housing have been deflated through a weaker dollar. The CPI adjusted house prices is a joke.

Given that housing sales and prices always peak in the summer, while sales then drop steadily for the rest of the year, how could this be the bottom? If you want to call this upcoming December or January as the bottom, that would be some sort of reasonable prediction.

Or do you want to say the bottom was 6 months ago?

[Quincy K]

Re: Dow tops 9000 as home sales rise

I am pretty confident that housing is flattening out or rising.

It's in the homebuilder stocks it show as they pretty much reflect the market's view of all that other data, combined, it's no point in looking at the data and trying to be smart about it, studying the homebuilders is it. I have never seen such clear formations of bottoms as I see there.

Maybe the dollar will really fall through the floor. Maybe there will be a second round of house price gains, coupled with high inflation, and negative real interest rates as the trend of a stronger chinese yuan, that started from 2005, goes on further. Note the date, mid 2005. housing peaked, and the dollar had to drop. That is what happened. That's why gold have been rising so much since 2005, housing have been deflated through a weaker dollar. The CPI adjusted house prices is a joke.

You are basing your economic theories and investment strategies on the price of TOL and KBH? Or worse yet, the current run up in the casino(stock market) that is entirely manipulated by GS and followed by the unsuspecting sheeple?

Once there is no more money to be made on the upside, GS and all their cronnies are going to make it on the downside.

Haven't you figured this all out yet?

[metalman]

Re: Dow tops 9000 as home sales rise

You are basing your economic theories and investment strategies on the price of TOL and KBH? Or worse yet, the current run up in the casino(stock market) that is entirely manipulated by GS and followed by the unsuspecting sheeple?

Once there is no more money to be made on the upside, GS and all their cronnies are going to make it on the downside.

Haven't you figured this all out yet?

some of us wouldn't know if our shirt was on fire.

[GRG55]

Re: Dow tops 9000 as home sales rise

some of us wouldn't know if our shirt was on fire.

That's not an issue for many, after the government took it off their back to give it to Goldman and JPM...

[snakela]

Re: Dow tops 9000 as home sales rise

I am pretty confident that housing is flattening out or rising.

I think we have to be more specific on what we mean by housing. Inventories are being worked off. Sales rise each summer but wil still be down YoY levels. IMHO, who cares about comparing to sales level from a bubble. Prices may have bottomed for now. I almost can't comprehend how they won't given a zero interest rate policy + printing.

I dont know what the homebuilders can possibly be building unless buyers are trading up to newer houses or out of condos/appartments.

[GRG55]

Re: Dow tops 9000 as home sales rise

I think we have to be more specific on what we mean by housing. Inventories are being worked off. Sales rise each summer but wil still be down YoY levels. IMHO, who cares about comparing to sales level from a bubble. Prices may have bottomed for now. I almost can't comprehend how they won't given a zero interest rate policy + printing.

I dont know what the homebuilders can possibly be building unless buyers are trading up to newer houses or out of condos/appartments.

Maybe some are trading down...to free up money for groceries...

[goadam1]

Re: Dow tops 9000 as home sales rise

Maybe some are trading down...to free up money for groceries...

Cheap money makes for more expensive items.

[snakela]

Re: Dow tops 9000 as home sales rise

Maybe some are trading down...to free up money for groceries...

I don't follow as it relates to homebuilders. Are you saying they are or will be busy building smaller/cheaper homes? Who will the current owners of McMansions sell to?

When I think about the housing bubble, it was easier for the population to collectively move up. Small house owners bought bigger houses by selling to renters or condo owners who were selling to even poorer renters/trailer owners etc.

I don't see how the process would be reversed unless there is some large shadown population of savy savers buying up those discounted McMansions now.

Where I live in Hicksville we didn't participate in too much price appreciation but even here houses and appartments grew like weeds. There is so much inventory its crazy. I don't see how a firm could make money building anything new.

[metalman]

Re: Dow tops 9000 as home sales rise

I don't follow as it relates to homebuilders. Are you saying they are or will be busy building smaller/cheaper homes? Who will the current owners of McMansions sell to?

When I think about the housing bubble, it was easier for the population to collectively move up. Small house owners bought bigger houses by selling to renters or condo owners who were selling to even poorer renters/trailer owners etc.

I don't see how the process would be reversed unless there is some large shadown population of savy savers buying up those discounted McMansions now.

Where I live in Hicksville we didn't participate in too much price appreciation but even here houses and appartments grew like weeds. There is so much inventory its crazy. I don't see how a firm could make money building anything new.

site:itulip.com housing correction

Housing Bubble Correction Update
Geographic Regions Cascade

Weekly Commentary - March 29, 2006

The dynamic that drove prices outward was the need for workers in the cities and later the suburbs to escape high real estate prices, to move to where real estate was relatively cheaper and the cost of living lower, but still within an “affordable” commute. As homebuyers traveled farther from metro areas, they encountered lower real estate prices. At the extreme top of the market in late 2004 and early 2005, some home owners who bought property in the mid 1990s in market bubble areas before a housing bubble reached their region, sold their property at a huge profit, purchased equivalent property in size and quality in a rural area, and retired on the profit with perhaps a low wage retirement job. For example, home owners from Boston and nearby suburban towns, as well as from new York and Connecticut, sold their homes and purchased homes in Amherst and surrounding towns, 90 minutes from Boston and have retired using the profit on the transaction. However, most rural homebuyers who purchased at the top of the rural market in mid 2005 did so to have a chance to buy an affordable home. Of course, as more and more homebuyers searched farther away from metropolitan areas, prices increased in outlying areas as well until property values in rural areas reached historical peaks and experienced bubbles of their own.