Housing Isn’t Bottoming Yet

I will go into more elaborate detail on this tonight, once I have a minute to breath. I’m too busy at work to get technical on why I seriously doubt this spike in home contracts constitutes a bottom forming in the market.

However, I will give you a gist of the idea now, to set up for later.

Basically, citizen wages are not a normal distribution. The distribution is obviously multimodal, and so you should expect several spikes in sales to occur at varying degrees of time. Yet, the small condensed areas toward to outliers which are creating these spikes likely have wide spreads between them and the more relevant, larger congregation of lower salaries, which must necessarily participate in any housing recovery in order to let it sink in.

In laymens terms, more well to do people are probably buying homes right now, but how many will they purchase, and after they have their fill, how long will it be before the next surge in homebuyers can have a turn?

Don’t get dragged into the suckers bet, ladies and gentlemen.