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By Jason Stipp | 08-13-2009 12:34 PM

Sentiment Flip in Housing

Increased demand for foreclosed homes suggests a new fear in the housing market: The fear of missing the bargains.

Securities mentioned in this video
TOL Toll Brothers Inc

Jason Stipp: I am Jason Stipp with Morningstar. As we look at the economic indicators, several of them turning positive, one very crucial indicator that we are watching very closely is what is going on in the housing market.

Here with me to talk about that is Morningstar's Eric Landry. He is an associate director of equity analysis and he covers home builders. Thanks for joining me Eric.

Eric Landry: Hi Jason.

Stipp: So, you mentioned to me a little bit ago that you feel like a bit of a switch on sentiment in the housing market has gone off recently. Tell me a little bit about what might be behind that and why people may be a little bit more positive now.

Landry: Well, it is funny because we actually started to see, in the real time data, improving signals back in March. And nobody really believed us. We were a little suspect ourselves.

But, what you see now is new stories talking about how conditions have improved. Indeed, it was a CNN Money article just last week talking about "buy a foreclosure now before they are gone." When is the last time anyone has heard of that?

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