Housing advances may be deceptive

Housing advances may be deceptive

Play all audios:

Loading...

Housing stocks moved Friday after new data showed construction hit its highest level in 7 months. However all may not be as it appears. Builders rushed to pour foundations for homes that


must be completed by the end of November for first-time buyers to take advantage of a special tax break. As you may remember, first-time buyers are eligible for a tax credit worth 10 percent


of the purchase price, with a cap of $8,000, this year only, due to Obama's stimulus package. "The largest spark...has been the looming deadline," says David Crowe, chief


economist for the National Association of Home Builders. However, shares of major homebuilders rose on the news, with KB Home and Hovnanian among the sector’s top winners.   But even with


the better-than-expected figures, the pace was still _46% below last year_, and many pundits don't expect a quick rebound. That's because companies are still shedding jobs and home


prices are falling, making people hesitant to commit to buying a new home. "There's still a long way to go before one wants to declare anything that begins to look like a strong


recovery or success," says Rebecca Blank, undersecretary of commerce for economic affairs. Better not tell that to Deutsche Bank economist Joe LaVorgna. He tells the Fast Money desk


that after months of being extremely bearish, he's starting to feel more optimistic. In fact he says, “I think the housing market may have bottomed!” Find out what's influencing


LaVorgna's outlook. Watch the video now! ______________________________________________________ Got something to to say? Send us an e-mail at [email protected] 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 website send your e-mail to . _Trader disclosure: On July 17th, 2009, the


following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (BTU) Call Spread; Najarian Owns (F) Calls;


Najarian Owns (INTC) Call Spread; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MCD) And Is Short (MCD) Calls; Najarian Owns (MS) Call Spread; Najarian Owns (MSFT) And Is


Short (MSFT) Calls; Najarian Owns (SU) Calls; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO) Call Spread; Finerman's Firm Owns (MSFT), (NOK), (WMT), (APC); Finerman's Firm


And Finerman Own (WFC) Preferred Shares, Finerman's Firm Is Short (WFC); Finerman's Firm And Finerman Own (BAC) Preferred Shares; Finerman's Firm Is Short (IJR), (IYR), (IWM),


(MDY), (SPY), (USO); Finerman's Firm And Finerman Own (RIG); Terranova Owns (TER), (RIMM), (SUN), (MSFT), (FTO); Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist


Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)_ _For Joe Terranova: Virtus


Investment Partners Owns More Than 1% Of  (ABD) Virtus Investment Partners Owns More Than 1% Of  (CBL) Virtus Investment Partners Owns More Than 1% Of (CAL) Virtus Investment Partners Owns


More Than 1% Of  (CLB) Virtus Investment Partners Owns More Than 1% Of  (DLR) Virtus Investment Partners Owns More Than 1% Of  (EXR) Virtus Investment Partners Owns More Than 1% Of  (IGE)


Virtus Investment Partners Owns More Than 1% Of (MEE) Virtus Investment Partners Owns More Than 1% Of  (DBC) Virtus Investment Partners Owns More Than 1% Of  (DBV) Virtus Investment Partners


Owns More Than 1% Of  (DBA) Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co Virtus Investment Partners Owns More Than 1% Of  Seagate Tax Refund Rights


Virtus Investment Partners Owns More Than 1% Of  (SKT) Virtus Investment Partners Owns More Than 1% Of  (TNB) Virtus Investment Partners Owns More Than 1% Of  (UA) Virtus Investment Partners


Owns More Than 1% Of  (WBMD)_ _For Jared Levy: __Peak6 Investments Is Short And Has An Options Position In (AGU) __Peak6 Investments Is Short And Has An Options Position In (AMZN) __Peak6


Investments Is Short And Has An Options Position In (BBT) __Peak6 Investments Is Short And Has An Options Position In (BTU) __Peak6 Investments Is Short And Has An Options Position In (EBAY)


__Peak6 Investments Is Short And Has An Options Position In (FCX) __Peak6 Investments Is Short And Has An Options Position In (GE) __Peak6 Investments Is Short And Has An Options Position


In (GS) __Peak6 Investments Is Short And Has An Options Position In (HAS) __Peak6 Investments Is Short And Has An Options Position In (IGT) __Peak6 Investments Is Short And Has An Options


Position In (JPM) __Peak6 Investments Is Short And Has An Options Position In (KO) __Peak6 Investments Is Short And Has An Options Position In (MAT) __Peak6 Investments Is Short And Has An


Options Position In (MCD) __Peak6 Investments Is Short And Has An Options Position In (MO) __Peak6 Investments Is Short And Has An Options Position In (NOK) __Peak6 Investments Is Short And


Has An Options Position In (PENN) __Peak6 Investments Is Short And Has An Options Position In (PLCE) __Peak6 Investments Is Short And Has An Options Position In (PM) __Peak6 Investments Is


Short And Has An Options Position In (POT) __Peak6 Investments Is Short And Has An Options Position In (SBUX) __Peak6 Investments Is Short And Has An Options Position In (SHFL) __Peak6


Investments Is Short And Has An Options Position In (SU) __Peak6 Investments Is Short And Has An Options Position In (UPS) __Peak6 Investments Is Short And Has An Options Position In (WMT)


__Peak6 Investments Is Short And Has An Options Position In (XLF) __Peak6 Investments Owns And Has An Options Position In (AXP) __Peak6 Investments Owns And Has An Options Position In (BA)


__Peak6 Investments Owns And Has An Options Position In (BAC) __Peak6 Investments Owns And Has An Options Position In (C) __Peak6 Investments Owns And Has An Options Position In (CAT)


__Peak6 Investments Owns And Has An Options Position In (CIT) __Peak6 Investments Owns And Has An Options Position In (COF) __Peak6 Investments Owns And Has An Options Position In (F)


__Peak6 Investments Owns And Has An Options Position In (GLD) __Peak6 Investments Owns And Has An Options Position In (GOOG) __Peak6 Investments Owns And Has An Options Position In (IBM)


__Peak6 Investments Owns And Has An Options Position In (INTC) __Peak6 Investments Owns And Has An Options Position In (JNJ) __Peak6 Investments Owns And Has An Options Position In (LM)


__Peak6 Investments Owns And Has An Options Position In (MMM) __Peak6 Investments Owns And Has An Options Position In (MRK) __Peak6 Investments Owns And Has An Options Position In (MS)


__Peak6 Investments Owns And Has An Options Position In (MSFT) __Peak6 Investments Owns And Has An Options Position In (PFE) __Peak6 Investments Owns And Has An Options Position In (SJM)


__Peak6 Investments Owns And Has An Options Position In (TXN) __Peak6 Investments Owns And Has An Options Position In (USB) __Peak6 Investments Owns And Has An Options Position In (USO)


__Peak6 Investments Owns And Has An Options Position In (UNG) __Peak6 Investments Owns And Has An Options Position In (YHOO)_