Update

An unexpected rise in new home sales has sent the indices surging. However the median price is down by a record 11% from March suggesting builders are slashing prices by large amounts to entice buyers. Despite the upbeat news I expect the housing market will not bottom till atleast late 2008. Remember the average peak to bottom in housing is around 3 years. If the peak was late 2005 than 3 yrs on is late 2008.