Is the housing bust over?

Yesterday, CNN reported that new home sales soared in June over May.  Could this indicate that the housing bust has ended?  The news story mentioned that while the new home sales were up 11% in June over May, the median home sale price was down 3%.

It’s uncertain how much Stimulus incentives for new home buyers helped spark the sales surge, and I’m sure you can get varying opinions about whether or not the stimulus plans helped.

Whether it did or didn’t isn’t as important as seeing the housing market starting to open up again.  The result could be banks freeing up credit to potential homeowners which will then hopefully free up commercial credit to home builders as they are able to sell off inventory.

I’m not sure what will quantify an end to the housing market issues.

Do you think this is a sign of the end of the housing bust?

Do you think the increase can be attributed to the Stimulus incentives?

Leave a comment and give us your thoughts.

– Mark Koziel

Comments

Anyone with a clue that dissected those numbers know that housing if far from hitting bottom. Until employment improves don't count on any bottom.

I was wondering if the extension of the home buying credit was extened through to 2010 and if the credit was raised to $15,000.00 for all homebuyers as proposed back in June.Any info on this would be greatly appreciated.
I don't feel there has been any improvement in the houseing market to date,I think there is still aways to go and that if they extended and increased the homebuyers credit it may attract first time buyers.

With the level of projected foreclosures in the pipeline it would seem premature to declare a bottom in housing prices.