Tuesday, July 29, 2008

The Housing Crisis is Far From Over

The Mess That Greenspan Made had some interesting charts up last week that got me thinking. First, here are the charts:

On both of these charts, note that the pace of sales as stabilized. In the case of new homes for a few months and in the case of existing homes for about 10 months. So, do these charts mean the housing market is starting to stabilize? Not yet:

This graph is from Calculated Risk:

So long as prices are in free fall (or cliff diving) we're nowhere near out of the woods.