Housing: The Bottom Is In
The main question now is not if, but how fast the housing market will improve.
Economic news this week had its moments of drama, but it was otherwise basically sedate. The markets cheered at least a temporary resolution to the Greek debt crisis. Even more importantly, a reduction in Chinese bank reserve requirements showed that the Chinese government is willing to do whatever it takes to prevent its economy from slowing too much.
Otherwise, there wasn't a lot of economic news this week except a batch of housing data that showed continued improvement. I believe the bottom in the housing market is definitely in. The main question from here is the pace of that improvement, not if there will be a recovery at all.
Robert Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.