New home sales jump from record low

Key word here is government incentives boosted sales.

Sales of new homes surged 27 percent last month, bouncing off the previous month's record low and blowing past expectations as better weather and government incentives boosted sales.

Aggressive optimism or pessimism is often misplaced. While the real estate market, supported by government incentives and bailouts, has improved, it remains firmly contained within a down cycle. Only after years of working off the excesses of the previous expansion will the down cycle end.

New Home Sales And Change YOY, SA:


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Building Permits And Change YOY:


Source: finance.yahoo.com