You Call This a Housing Recovery?

Jan.27.11 | About: iShares U.S. (IYR)

The stock market yesterday was encouraged by better-than-expected new home sales. Here’s the long-term chart (click to enlarge):

United StatesClick to enlarge

At very low levels, percentage increases can look very big. In the long-term, though, recent activity looks like random noise at the bottom of the barrel.