The Housing Bottom Is Finally Here

There have been some recent articles arguing the â??housing bottom is nowhere in sightâ?. That isnâ??t my view.

First there are two bottoms for housing. The first is for new home sales, housing starts and residential investment. The second bottom is for prices. Sometimes these bottoms can happen years apart.

For the economy and jobs, the bottom for housing starts and new home sales is more important than the bottom for prices. However individual homeowners and potential home buyers are naturally more interested in prices. So when we discuss a â??bottomâ? for housing, we need to be clear on what we mean.