Real Estate to Bloom in Springtime?

Real Estate to Bloom in Springtime?

Investors might discover in the weeks ahead that calling a bottom in the housing downturn is a mug's game.   First, it had been looking to some like a bottom might be at hand. Then, Lennar Corp. said it expected to show a large loss on the back of land write-downs of $400 million to $500 million. The home builder said it has yet to see "tangible evidence of a market recovery." Later on, the National Association of Realtors said its index of pending home sales, which is based on how many sales contracts have been signed in a given month, slipped in November. The Dow Jones index of home-building shares fell 4.3%.

This is a slow time of year for the housing market. Little wiggles in actual activity can look bigger after statisticians make their seasonal adjustments. A warm January can distort the view even more. Home builders say they won't know for sure if the downturn is over until the spring, when seasonal activity picks up.

Here is one reason to be careful about calling a bottom now. A large number of homes for sale are unoccupied.   Read the full story here…

Then leave us your comment about the article. What is your opinion about the state of the real estate market now? Maybe you would like to share with us your views on housing market in 2007?