Prof. James Hamilton does all the heavy lifting here, so read his post. Basically, the gist of Hamilton’s analysis –that the worst for home sales is over–seems to be holding up so far. And while this is good news there is still reason to be cautious. One potential problem is that there could still be a loss of construction employment in the housing sector and if that coincides with additional job losses with domestic automakers that wouldn’t be good for the economy.