Have you guys been noticing the new highs in residential real estate stocks? KNX radio in LA did a story on a real estate investment company a couple of months ago that has been buying up foreclosed properties in so Cal and Nevada, it was a huge amount. I noticed in the last week of April that a lot of residential real estate stocks were making new highs, and I put a few in my buy watch. On May 15 I bought MHO at 14.86 and it seemed to hold up well during the overall market selloff for the last couple of weeks. Their website seems to show that their properties are back east, and it makes me wonder if the real estate market is putting in a bottom nationwide.
I look at MHO and see a stock that has tried to break 18-19$ 5 times since Mar 2009. Many housing stocks are 70 RSI right now ~ On an anecdotal basis - I went to see a lawyer who had moved and his entire building of like 12 suites were totally empty. This was in a decent neighborhood in the suburbs of Chicago. Some of the higher cost of living places seem to be doing better, but overall I think the US housing market is still in bad shape.