New Home Sales
And those brand spanking new homes aren't selling any better. In a separate report, the Commerce Department says sales of new homes dropped 2.9 percent in November.
Like we said above – the two reports paint a pretty bleak picture. But is this the edge of night?
“The homebuilder stocks are a great proxy for people making early bets on the return of the economy,” says Deutsche Bank analyst Nishu Sood. “At some point they should rally ahead of the broad market.”
When will you know it’s time to get long?
Sood recommends keeping an eye on new home sales data. “Those numbers are going to be the most leading indicator. So when that number begins to stabilize you can have some confidence that things could turn around.”
Should you play housing now?
“I’d watch and wait,” counsels Sood . “(The turnaround) could be a second half of 2009 event.”
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Trader disclosure: On Dec. 23rd, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (SDS), (DIS), (MSFT), (MCD), (WMT); Najarian Owns (MSFT) Calls; Najarian Owns (UYG) And Is Short (UYG) Calls; Najarian Owns (XHB) Calls; Najarian Owns (HOLX) Calls; Finerman's Firm Owns (MSFT); Finerman's Firm Owns (OIH) Puts; Finerman's Firm Is Short (IYR), (IJR), (IWM), (SPY), (MDY), (BBT), (COF), (USO)
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