Tuesday, 26 August 2008

US housing crash continues

It is the crash that keeps on giving. The US housing market shows absolutely no sign of recovering. City after city, prices keep dropping. The market has now fallen remorselessly since June 2006. The crash has taken back four years of bubble gains, with prices back to their June 2004 level.


Anonymous said...

It must go back to $ 120,000.


Borrowers must apply 'four times' to get mortgage, survey says

By Myra Butterworth, Personal Finance Correspondent
Last Updated: 11:02pm BST 20/08


Rebecca Wilder said...

Hi Alice,

I disagree with you on this one. The Case Shiller index is 1-month lagged compared to other housing data, and simply does not represent the state of the current housing market. Indeed, housing sales may have already bottomed out, which is certainly a significant sign of recovery.

New home sales today posted a 2.4% surge in July and inventories fell, driving up the average sale price $700 to $230,700. Yesterday, existing home sales marked a 3.1% monthly gain to 5million homes, which was its highest rate since Feb. 2008. But alas, inventory growth out-paced sales and prices fell. Once some of the inventory related to foreclosures is worked off (probably a good share of existing home sales), sales will hit a bottom, and many economists believe will happen this year (some believe it happened in the 1H of 2008). http://blogs.wsj.com/economics/2008/08/26/economists-react-all-but-a-prologue-for-housing/ If you asked me, this is all positive news in the US housing market.

Thanks, Rebecca

Markbaldy said...

Houses in all but the most grotty parts of the UK are unnafordable.
I was in the Lake District over the bank holiday and property prices are treble what would be affordable for local people.
Prices would have to return to 1997 values... 2004 values are still way overpriced.
I want to live in a nice area but if I was realistic, I would probably be better just moving abroad... how long do I stay in the UK for... hoping that prices come down to sensible levels once more ?