Tuesday, Aug 26, 2008
The rate decline isn't quite as sharp as before.....
Times: US house price fall steadies as confidence rises
AMERICA'S ECONOMIC PROSPECTS appeared to take a turn for the better today as new data showed that US house prices, the volume of home sales and consumer sentiment were holding up better than expected. Although house prices are still falling, the rate of decline in the second quarter was only about a third of the drop recorded in the previous three months, according to the S&P/Case Shiller national home price index. ------- Wow this really takes wishful thinking to a new level. This is just a breather before the next wave of price falls. The 2006 and 2007 vintage fixed-rate mortgages have yet to reset to the SVR; when that happens, price falls will accelerate again. The UK is still up to twelve months behind the US....
Posted by drewster @ 11:59 PM (584 views) Add Comment
8 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Sneaker said...
Blimey, the market isn't crashing as fast as before.
Just as good as a raging bull market!
2. gardeniadotnet said...
From Comments...
Sentiment in the US is gradually returning. This is good news becuase what hapens in the US eventually filters through to the UK. So in in next 18/24 months we will be through the worst of it in the UK. Good news for the UK.
Rupert, London, UK
3. harold said...
Hmm, the US housing market isn't even managing a dead cat bounce - more of a dead cat skid before further horrific falls.
4. This comment has been removed as it was found to be in breach of our Blog Policies.
5. drewster said...
It's true, sentiment is returning. The plunge protection team have been hard at work, making sure consumer confidence is restored to former highs. But there's a fundamental problem: you can't build an economy on sentiment and confidence. There's still the small matter of trillions of dollars of debt, much of which may never be repaid. There's the price of petrol, still far higher than before. There's unemployment, still rising. And there are all those houses, still looking highly over-valued.
No, this improvement in sentiment won't last long.
6. Hotairmail said...
From Wiki....
"It (the film IOUSA) also elaborates on several startling statistics mentioned in the movie - from the $9 trillion federal debt to the $738.6 billion trade deficit to the fact that each citizen owes an average of $30,000."
Fed debt of $9 trillion divided by population 300m. That gives debt per person of $30,000. That is about £15,000 each.
Is that really an armageddon scenario?
Inflated away at 5% to 10% pa means you can add $0.5tn to $1 tn each year without affecting the real value of the debt.
7. beartil2010 said...
What we need is another huge bust - Lehmans or Fannie or Freddie will do nicely. Then everyone will remember that actually the US is still in very dire straits.
8. Fingerbob69 said...
There is currently (according to the BBC) 1.8 million unsold new homes across the US. And they're still building. Basic rules re:supply and demand means US prices will continue to fall for quite some time.