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Lander

Us Home Sales Plunge By Record 27.2%

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Just to reiterate a point the guy in this video makes, no matter how low IR's go, if you don't have a job you can't buy a home

Is the second leg down starting as a result Option ARM and Alt - A timebombs now exploding as accurately predicted (FF to 9:00) in this video back in 2008?

Could this next wave of repos trigger credit crunch2?

Edited by Lander

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At least the US market is being allowed to correct. We have had a flood of bearish UK property news recently, but how much longer can reality be suspended?

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At least the US market is being allowed to correct. We have had a flood of bearish UK property news recently, but how much longer can reality be suspended?

Time to buy a property in sunny Florida? Which county has the lowest crime rate?

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When I saw this 27.2% fall in a BBC article yesterday it wasn't the headline that concerned me as that is just the 'free' market maybe for once being allowed to work. What concerned me more was this quote from an economist - "unfortunately, it is a situation where we can't have a meaningful recovery without a meaningful consumer recovery, and we can't have a meaningful consumer recovery without a recovery in housing."

If that is the case then the US and the UK for that matter is IMO doomed. I've captured more thoughts on my blog here http://retirementinvestingtoday.blogspot.com/2010/08/if-this-is-true-then-us-and-uk-for-that.html if anyones interested.

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dunno,when the deluge comes there's nothing to stop it.check out ireland,.dublin down 50% in two years.

Exactly, I can see similar falls coming here in the UK if IRs go up with a rattle.

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errr....incorrectomundo

According the the New York Times:

Housing sales in July plunged 25.5 percent below the level of a year ago, the National Association of Realtors said on Tuesday, as buyers lost the spur of a government tax credit. The steep descent surprised nearly every analyst and put the volume of single-family home sales at the lowest level since 1995.

Quite an interesting article here.

Encouragingly, it suggests there is a limit to how much you can distort one sector of the economy when the rest is in freefall.

Mortgage rates are the lowest in modern memory while affordability, because of price declines of 30 percent in many areas, is the highest in at least a decade. The government is allowing buyers to put only a token amount down, guarantees lenders against default and regularly issues proclamations that the worst is over.

Apparently, all of that is not enough to put a floor under housing. With unemployment steady for month upon month at more than 9 percent, and with millions heavily in debt or simply skittish, many potential buyers are lost to the market.

Home Sales Fall 25% Renewing Economic Anxiety

Edited by copydude

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This 27.2% drop. Over what period of time is it? The news seems to be that it's in 1 month, which I presume is totally wrong.

It is over 1 month - but a drop in sales NOT prices

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Well, that's astonishing for one month :o

It's all astonishing, however you compute or report the figures. As the NYT points out, the withdrawal of the subsidy had an immediate effect . . . though greater than 'analysts expected'.

This is the UK's dilemma . . bail bankrupt banks to preserve asset values . . . on property which is valueless when people have no jobs or means to buy them.

You can't skew all of the markets all of the time.

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It's all astonishing, however you compute or report the figures. As the NYT points out, the withdrawal of the subsidy had an immediate effect . . . though greater than 'analysts expected'.

This is the UK's dilemma . . bail bankrupt banks to preserve asset values . . . on property which is valueless when people have no jobs or means to buy them.

You can't skew all of the markets all of the time.

Same will happen here in Jan to the UK's retail sales figures, after a bumper Christmas binge (To avoid the VAT Hike) people will cut back in Jan after bringing forward purchases they would have traditionally made Jan/Feb time, to avoid the said hike.

Will those same "Analysts" then also be surprised by the drop in the UK's retail sales figures?

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Well, that's astonishing for one month :o

Seems like it's to do with withdrawal of FTB tax credits - luring demand forward makes the product taste like candyfloss, then the stick gets jammed down the consumer's throat. No worries - the taxpayer will perform a tracheotomy with his fingernails.

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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