The housing market continues to deteriorate. Thursday's report on May pending home sales was down 30% from the prior month and nearly 16% vs. a year ago. The market weakness spans the country. Sales in the Northeast, Midwest and South fell more than 30%, the bright spot, the West, only fell 21%.
The news comes after last week's record low new home sales in May, which plummeted nearly 33%. Experts say the expiration of the new homebuyer tax credit is to blame for the sudden market softness.
Unfortunately, the market could get worse and prices could fall further, says Richard Suttmeier of ValuEngine.com. High unemployment and struggling community banks are two main causes. Saddled with bad housing and construction loans, local banks will continue to restrict lending.
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How low can prices go?
Using the S&P/Case-Shiller index as his guide, Suttmeier suggests homes across the country could lose half their value. “If it gets back, like stocks, back to the 1999-2000 levels, that’s another 50% down in home prices,” he says.
Using the S&P/Case-Shiller index as his guide, Suttmeier suggests homes across the country could lose half their value. “If it gets back, like stocks, back to the 1999-2000 levels, that’s another 50% down in home prices,” he says.
More Here..
If only I had a job, soon beachfront condos will be $20,000.00
ReplyDeleteOf course the possibility of a 50% further in home value, does not apply equally across the board. I suspect out in the area I am, it will be even more than 50%, but some areas of the country may only be 20% down. However you cut it, that means the DEPRESSION is not only expanding, but deepening throughout the country.
ReplyDeleteCash is king again now, and will be for some time, at least till inflation really kicks into high gear, which still may be a few years away. First of all have to get rid of the debt, but nothing is changed at the national level,,,,spend, spend, spend is the call of President Obama and congress. Vote out the incumbents from either party and send a message.
And the 2nd story about Oakland police and fire inspectors searching without a warrent. Being a former fire inspector myself, I never searched without a signed OK from the bldg or home occupant, even in investigating fires and if they did not give permission, would take the time to get a court ordered search warrent. And I will never allow any police etc, to search my house, OR auto without a search warrent. NEVER give unsigned permission to conduct a search because they WILL find something.
ReplyDeleteWell = that's good; because if any sonofabitch t EVER enters my home without my consent will be first greeted by Griz my 145# Husky/Shepard and second; my 8 3/8" Smith & Wesson .44 Magnum.
ReplyDeleteSomewhere down the line, not to distant from now; there will be a time when we will enter
Citizen 2.0 - these people "in power" will need to be SHOWN that there are certain unalienable rights that we the people are VERY willing to die for.
They keep on taking, taking. taking
Not MY home and MY family; No sir !
You fuck with either without due course and I will make you pay - all of you if that's what it takes.
We need to make everybody in this country understand that I think - that line CANNOT be crossed
Well this is still the US of A, and no matter how it seems to be falling apart, there are still many people around like 2:19.
ReplyDeleteThings were difficult for our forefathers in the 1700's as well but not as complicated as they are now. Forefathers stopped the "in power" people
by giving it there all and that means a lot of their lives. It will happen again, but the trouble with stopping them this time will be the great amount of "disinformation" that has been sown around. Then, you knew your neighbor on the next farm was with you 110%. Today, everyone is so confused, selfish, and in the dark, you can't really count on them until it could be too late to organize for action.
The "in powers" have had many many years to slowly and carefully insert the wedges in us.
Hey, you can tell that from reading this blog. There is so much arguing about why its this, or why its that, and I am right and you are wrong, and the truth is that none really know enough to actually put any cold facts out. The only facts are like 2:19 wrote, and that is he has a big dog and a big gun, and that is really good. He has a solution anyway.
Ask yourself this: Who (anywhere--internet, friend, family, neighbor) could you trust to "agree" with you on what to do? Who?
The takeover is simply through disinformation, and the inability of many average Americans to see though it, because they are not looking for it.
Economic Analyst, this is so scary. Thanks for posting this.
ReplyDeletePlease give us updates on it.
That's not the only thing the Oakland Police screwed up on.
ReplyDeleteIn an article by Bobby White and Justin Scheck, it says that a white transit police officer was convicted of involuntary manslaughter for the killing of an unarmed African-American man. The officer's name was Johannes Mehserle.
The city of Oakland needed to be audited.
This article dosen't seem to be listed on the blog archive.
ReplyDelete