The housing recession isn't over

By Paul R. La Monica, editor at largeSeptember 20, 2010: 1:31 PM ET

NEW YORK (CNNMoney.com) -- The worst is over for the housing market -- at least according to Wall Street.

Shares of home builder Lennar were up more than 6% Monday after the company reported a stronger-than-expected profit for the third quarter (it reported a loss a year ago) as well as a 14% increase in sales. Other builder stocks moved higher as well.

The S&P Homebuilders ETF, which includes shares of several housing-related stocks, has been rising on hopes that the real estate market has hit bottom.

The news that the recession that began in 2007 officially ended a year ago helped boost stocks too.

But while traders are popping champagne corks, it's better to take a closer look at the Lennar (LEN) report. The past three months may have been decent, but the future looks less promising.

For the housing market, at least, it doesn't look like the recession is over just yet.

Lennar admitted as much, saying that new home orders during the quarter were down 15% from the same period last year.

In a statement, Lennar CEO Stuart Miller conceded that while his firm was holding up better than some rivals, "high unemployment and foreclosures have continued to present challenges for the national housing market."

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