To show this trend even better I added another line to the chart. This is the 50-day moving average. As you can see the XHB is still trading below this important indicator. In the last two months XHB moved above the 50-day moving average, but couldn’t hold onto the gains. Also the moving average is still in a down slope (never a good sign).
I like this indicator because it looks at longer term trends. Despite all the fundamental reasons to look at the housing market, the technicals say watch out.

The banks are lending out very little money and as long as that trend continues, the only buying will be done by people who have the money already.

@chestnut ..they wont buy on a falling market I assume.

It's risky business thats for sure. I also depends on how much money you have. The temptation to pick up a $223,000 house for $36,000 when $36,000 is just spare change to you, can be a pretty big temptation.
This isn't happening enough to change your chart, I think it's safe to assume, unlike some other assumptions that may not be.

Chestnut.. hi...the chart comes from states check the site..Remember that 50 days for a big upturn because the earlier one was flaky and dived again ,any way its a long term investment $36000 sounds cool.You couldnt build a cabin for that I imagine cheers gotta go.