February better for housing but nothing to celebrate

The latest government reading on the housing market reported that February rebounded off the 9 year lows but the home builders are still pulling back on their plans for future building.

The housing starts were still 28% below the February numbers of 2006 which is a clear indicator that this is nothing to celebrate. Most new home builders are indicating that they believe that we have not yet hit bottom. They expect another decline in March with nothing stellar to report for the remainder of this year.

Part of what is causing this decline is the glut of new and existing homes on the market now. Until inventories decline it is unlikely we will see a reverse in this trend.

Popularity: 2% [?]