May 11,2007: Housing, lending, CHR and NVBDF opinions

As of May 9, 2007, MLS listings covering fifty-five major markets, representing roughly 1/3 of the nation's existing inventory showed that listings increased 0.8% wek-to-week and represents the 16th increase in the past 17 weeks. There were over 1.286 million units for sale in the top fifty-five markets, which is the highest level ever recorded. Last week Atlanta (9%), San Jose (8%), Cincinnati (7%), San Francisco (3%) and Salt Lake City (3%) posted the largest weekly increases. For Meyers (-3%), the Inland Empire (-3%) and Tampa (-2%) were the few decliners in listings week to week.

For the week ended May 4, 2007, the purchase application index was up %5 year over year agaist a -21% comparison (this is really dismal, IMO). Refinancing posted a 48% gain year to year, given a drop in rates.

I posted a prediction of a bottom being at hand come late summer. I stand by that prediction, especially on the coasts. That said, wonderful deals are available for the investor with good credit and some cash NOW.

CHR (Converium) a holding of mine has agreed to be bought by SCOR. I sold out gradually over the past two months and sold the final shares today for a 73% pre-tax profit over eighteen months.

Nova Biofuels (NVBDF) a recommeneded speculative holding bought last month at around 2.25/share has been accepted for listing on the AMEX. It shot up to 3.10/share today.
Anything south of 3.00 share is a steal now, IMO.I like this little gem of a company very much.