Pent-up Demand Rears Its Lovely Head in Housing

Significant sales gains in Florida and California, according to the National Association of Realtors, are possibly early indicators of a move up from the bottom of the burst housing bubble, possibly urged on by pent-up demand for homes.   Although the Pending Home Sales Index was lower than the year-earlier period, it was lower by a lot less than expected — and it was actually up in some geographic regions of the country. 

NAR chief economist  Lawrence Yun expects a continued contraction of GDP for the first half of 2009, followed by a resumption of growth in the second half of 2009, powered by a pickup in home sales.  For more detail see, or commentary by Ron Haruni at

Of course all eyes are focused on the various arms of TARP, the newly activist FDIC and quasi-governmental Fannie/Freddie.  But it may be worthwhile to focus as well on some of the private-sector entrepreneurs, such as Liberty Capital Asset Management, which is working quietly in the Rust Belt to save working-class homeowners from foreclosure — and succeeding.   Check LCPM on Nasdaq, but there is not a lot of information available yet, due to recent reverse merger into a public shell.  The company’s website is


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