Housing bottoming out huh?
Then why is BenB scared sh*tless and why is WaMu’s Alt-A loan pool looking scarier by the day?

http://globaleconomicanalysis.blogspot.com/2008/05/wamus-suspect-mortgage-pool.html

There is a steady increase in REO supply on the market and they are the only homes selling, which are bringing down comps all over the place.

I just saw a local paper run a front page article which states that the price declines have started reaching ‘bullet proof markets’ such as Seattle and Chicago.

Meanwhile, brand new 1,600 sf homes near me have dropped by $100,000 in price over the past six months and still nobody is buying.

Banks are continuing to tighten credit standards, so the tiny pool of those actually looking to buy are shrinking even further:

http://money.cnn.com/2008/05/05/real_estate/bank_lending.ap/index.htm

We’re also rapidly approaching $200 for a barrel of oil ($5 per gallon):
http://money.cnn.com/2008/05/06/news/economy/200_dollar_oil.ap/index.htm?postversion=2008050610

Oh yeah, housing is bottoming out all right. I must be stupid for thinking to the contrary.