Housing Market Bottom?
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.
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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
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