While there are some bright spots in the housing market, I still don’t think it’s hit the bottom of this dip yet.

The pace of existing home sales edged up in November from a record low, according to a report on Monday that offered some tentative signs of stabilization in the still-ailing housing market.

Sales of previously owned homes rose 0.4 percent to a 5 million-unit annual rate, the first increase in nine months, the National Association of Realtors said.

Not only has the residential mortgage industry self-imploded, but now the commercial sector might be showing signs of strain as well.

As more banks report write-downs tied to the global credit crunch, analysts say Wachovia Corp (WB.N) may have losses lurking in an area that has garnered less investor attention.

The fourth-largest U.S. bank has in recent years aggressively tried to add market share by underwriting commercial mortgage-backed securities.

Demand for such securities has slid amid credit concerns, leaving dealers struggling to unload loans whose quality might be perceived as less sound than investors now demand.

It’s going to make for an interesting 2008, that’s for sure.

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