New single-family home salesrose slightly in October and the supply of homes on the market fell to its lowest level since April of last year, showing some healing in the battered housing sector.
The Commerce Department said Monday that sales edged up 1.3 percent to a seasonally adjusted 307,000-unit annual rate. And according to “Fast Money” trader Jon Najarian, those numbers are a sign that the housing market should soon turn around.
“That is just so pathetically low that I can’t believe we’re not going to see an absolute bottom in that number this year,” Najarian said.
And once those numbers start moving up after hitting bottom in 2011, it's going to be a rapid ascent, he added.
October’s sales are less than half the 700,000 that economists say must be sold to sustain a healthy housing market.
While new home sales represent a fraction of the housing market, they have an outsized impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to the National Association of Home Builders.
Najarian said for a ‘tell’ on the housing market, just look towards copper .
“If you start seeing [copper] jump back up towards $4.00, you will know that housing is indeed back,” he said.
Got something to to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to email@example.com.
Trader disclosure: On Nov 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss Long EUO; Weiss Long QCOM; Weiss Long NFLX puts; Weiss Long HPQ stock; Weiss Long DE Stock; Weiss Long MDRX stock
For Pete Najarian
Najarian Long AAPL Stock; Najarian Long AKS Calls; Najarian Long C stock; Najarian Long JPM Calls; Najarian Long WFC Calls; Najarian Long INTC stock; Najarian Long YHOO Stock
For Steve Grasso
Long Retailers in Retail Based Hedge Fund
Has positions in AA, AKS, AMR, ASTM, BA, BAC, D, LIT, MHY, PFE, PRST, S, XLU
For Dick Bove
* No Disclosures
For Kimberly Greenberger
Morgan Stanley managed or co-managed public offering in EXPR
Morgan Stanley received compensation for investment banking services from EXPR, LTD,
Morgan Stanley expects to received or seek compensation for products from ANF
Morgan Stanley & Co. LLC makes a market in the securities of Abercrombie & Fitch Co., Aeropostale Inc, American Eagle Outfitters, Inc., AnnTaylor Stores Corp, Chico's FAS Inc., Children's Place Retail Stores Inc., Coach Inc, Express, Inc., Gap Inc, Guess, Limited Brands Inc, Lululemon Athletica Inc., Ross Stores Inc., Skullcandy Inc, Teavana Holdings, Inc., Tiffany & Co., TJX Companies Inc., Urban Outfitters Inc..
Morgan Stanley & Co. International PLC and its affiliates have a significant financial interest in the debt securities of Limited Brands Inc, TJX Companies Inc..
For Jeff Kilburg
* No Disclosures
For Vasily Karasyov
SFG is a market maker in the securities of AMC Networks, Inc. (AMCX), Walt Disney Co. (DIS), Discovery Communications, Inc. (DISCA), DreamWorks Animation SKG Inc. (DWA), Madison Square Garden, Inc. (MSG), Netflix, Inc. (NFLX), News Corp. (NWSA), Time Warner Inc. (TWX), and Viacom, Inc. (VIA/B).
SFG and/or its affiliates beneficially own 1% or more of the securities of Netflix, Inc. (NFLX).
For Neil Doshi
-Firm has received compensation for products and services other than investment banking from ERTS
-ERTS has been a non-investment banking client of Citgroup Global markets over the past 12 months
For Dennis Forst
Firm makes market in WYNN Securities
Expects to receive or seek compensation for investment banking from WYNN
CNBC.com with wires.