Housing posted a surprising gain in December. Today existing home sales figures came out and they posted a 6.5% gain from November to December. Housing sales were up because prices of houses have been slashed so much that people are going out to get them at bargains. Is this a sign that housing has bottomed?
Maybe. But be aware, that this does not mean the housing crisis is definitely over. Unemployment numbers are still rising. As unemployment continues to increase, people will become more frightened of losing their jobs. When people are scared that they might lose their job, they are not going to go out and make big purchases, such as buying a new house. So we may see a drop when January home sale figures are released.
I'm not saying that it will drop for sure, just be aware that this trend may not continue.