Guidant Financial Group Blog

Two reports that were released today confirm that the housing market is continuing its march downhill.

The Census Bureau reported that new home sales fell 0.6% in June (see New Home Sales Stronger than Expected). While the drop wasn’t as pronounced as economists had predicted, all the “it’s not as bad as we thought it would be” comments are a bit too reminiscent of that old joke: “But other than that, Mrs. Lincoln, how did you enjoy the play?”

We’re trying to see the glass as half-full. Really we are.

Additionally, RealtyTrac announced today that foreclosures are up 14% from last quarter – and 120% from last year (see Foreclosure Filings Up 120%). RealtyTrac’s data also showed that bank repossessions were up for the year. Some experts believe this is a sign that we have finally hit rock-bottom, but still others think that homeowners are simply running out of options.

There is a housing bill on its way, which should help alleviate some of this pain. For those, however, who think that “buy low, sell high” translates to housing investments just as much as it does to securities, some analysts may suggest that you pick this low hanging fruit sooner rather than later.

Hmmm. Well, maybe that glass could be half-full, after all!