Home Sales Rebound — Not

Headlines may scream "New-home sales rose unexpectedly . . ." as in today’s Wall Street Journal, but let’s keep the news in perspective with a bit of graphical history:

Newhomesales

The trend is still down.  If this were a stock, we’d call it a dead cat rally.  We probably have a bit more decline, then rough stability around 900,000 single family units.  It’s still a weak market.

Business Strategy Implication: The houisng sector is still weak and getting worse.