Seek points of light in this market and you can find them. Jane Wells with CNBC reports today that not only are home stocks up for the day, but Google claims during the last five weeks, there has been a 42% increase in users typing "HOMES FOR SALE" in the Google search bar.
This Google report says search terms can be good indicators for markets-to-come and offer about a one-month lead time. Perhaps reluctant buyers stayed on the sidelines during the summer, waiting to see what direction market winds might be blowing. Perhaps the buyers wanted to wait until school started to resume their home searches. Nobody knows for sure, but Google seems confident that the increase in search frequency signals a change in market direction.
Contrarian minds, of course, might argue that these searches came from desperate sellers seeking market and pricing guidance.
It was also reported that Barron's is suggesting homebuilder's stocks may be near bottom. This would be welcome news for Toll Brothers, Hovnanian and a host of other builders who are scrambling for buyers. closings and contented shareholders.
Not to be lost in the discussion would also be softening mortgage rates and rising rents for residential properties--which all bode well for real estate sales.
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