The InvesTech Housing Bubble Bellwether Index stayed within a narrow range last week in the face of mixed economic news. While it may be possible that housing stocks are starting to build a base after such a steep decline, a significant liftoff from these low levels will require several months of steady improvement in sales and inventories.

Existing home sales ticked downward in March, with much of the decline concentrated in the mid-west and the south. Sales are now off 32% since June of 2005 and inventories remain stubbornly high. As recession fears continue, downward pressure will likely remain for some time to come.