Big investors are betting against housing (on marketwatch.com)
For now it looks like they may be on the wrong side of the trade. Two primary reasons: one fundamental and one technical.
On the fundamentals housing construction numbers from the Commerce Department were as reported by Reuters:
Housing stocks rallied for a second day after data from the Commerce Department showed sales of new U.S. single-family homes rose more than expected in April and the supply of houses on the market hit a 3-1/2 year high. A day ago, another report showed existing home sales rebounded in April .
While demand is still healthy the chart indicated that the market is still on housing. After printing generally lower prices for two months price hit $30 (the line of defense I cited in my post on May 4th), formed a "spinning top" indicating indecision and then rebounded hard this week.