A wiser fella than myself once said, "sometimes you eat the bear...sometimes the bear, well, he eat's you." - The Stranger (Sam Elliot), "The Big Lebowski" - LINKLast Thursday and Friday the Dow Jones homebuilding stock index had a two-day bounce connected to the National Association of Homebuilders "Market Index" (Thursday) and the Census Bureau's housing starts report (Friday). The bounce came on the heels of an 8-day 10% plunge in the homebuilder index, so an "oversold" bounce was not unexpected. Interestingly the Friday spike higher at the open didn't last, as the builder index closed flat on the day - which is very bearish.
Today the homebuilder stock index is down 4%. I wrote an article on the housing market/housing stocks on Friday for Seeking Alpha which explains why the data released on Thursday/Friday was largely immaterial to the prospects of the housing market and why the housing market is firmly entrenched back in its bear market that really started in mid-2005.
You can read the article here: The "Bear" Has Its Claws In The Housing Stocks.
Anecdotally, I'm really starting to see a deluge in "for sale" signs pop up all the around the Denver area - from the Highlands neighborhood north of downtown all the way down to the south metro area by Highlands Ranch. It's especially acute in the central Denver area, where I live. In addition, I've observed several stale "contract pending" signs on top of "for sale" signs, which indicates that financing is now a lot more difficult.
I fully expect that both the homebuilder stocks and the overall housing market - price/volume - will ultimately go below their lows set in 2008, before Bernanke and Obama dumped a few trillion dollars into all aspects of the housing market to try and generate a recovery. Guess what? They failed - badly.