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Housing Slump

March 23, 2011 – 5:53 pm

As the market looks for a direction, with being up for three days in a row as of Monday after being down for two weeks and with the last two days showing some more weakness, traders and investors search for reasons to buy or sell stocks.

This morning new home sales in the U.S. for February were disappointing being down 16.9% when the experts’ expectations were for a slight gain. Where they thought strength of any kind was going to come from is beyond me. If existing home sales were down 9.6% as reported on Monday how in the world could anyone think new home sales would be better?

The pundits are now talking about a double dip in housing. I think that is a little too soon to determine. In the last couple weeks interest rates have fallen below 5% again and that may well spark a little demand going into the spring.

Do not expect housing to recover for this year and maybe not next year as well. When the recovery comes it is going to be like producing new jobs in this economy, painfully slow.

Good Trading
Steve Peasley

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