Two Ways: Housing Begins Rebuilding Process
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Housing starts jumped to 582,000 units last month marking a 3.6% gain from the total in May, mostly on single family homes which had the biggest jump since December of 2004.
The bounce was somewhat expected after housing starts reached their lowest levels in April in 17 years. Also helping was a federal program which offered first time home buyers a $8,000 tax credit.
Still, foreclosures continue to weigh heavily on the sector as well as tough credit conditions making it difficult to finance construction complexes and condo units.
See related article, Professor Andrew Jeffery's recent column, Why Should I Care: Real Estate & Price Discovery?
From the Bull Pen: Housing bulls saw the angular rule of 4 breakout that Professor Jeff Cooper likes to talk about (in the homies (XHB). A pullback to near the $11.50 level could provide a decent entry.
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From the Bear Cave: Bears can look to Darden Restaurants (DRI). Will these restaurants see more business as the economy continues to deteriorate? Is the stock headed towards gapfill near $30? Those playing the downside can set a buy stop above $35.
Have a great weekend everybody!
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