Housing Market About To Go Yo Y Negative

[Realistbear]

http://www.telegraph.co.uk/money/main.jhtm...5/cnhouse25.xml

Falling house sales add to recession fears

By David Litterick in New York

(Filed: 25/08/2006)

Those who fear the US is on the verge of recession were given fresh ammunition after fresh data on the housing market showed new home sales tumbled more than 4pc last month.

The supply of homes available for sale also soared to a

10-year high

, figures released yesterday showed. There are now 568,000 newly built homes sitting unoccupied, the Commerce Department said.

The median cost of a home is $230,000 (£122,000), just a whisker above the $229,500 recorded during the same month a year ago.

Pessimistic analysts believe once house prices begin to show an outright year-on-year decline, the chances of the US avoiding a recession are slim.

When the world's largest economy goes into recession.........................

[Van]

And their prices aren't even as inflated as ours... $230k median price = £122k, which gets you a garden shed somewhere in Peterbrough. Britain is going to fall hard. Oh yes.

[Guest muttley]

And their prices aren't even as inflated as ours...

Yup.

Here's what you get for £195k (less than Rightmove's average asking price) in Orlando,Fl.

http://www.rightmove.co.uk/viewdetails-636...p;chnl=overseas

Here's what you get in Widnes for the same money.

http://www.rightmove.co.uk/viewdetails-846...=2&tr_t=buy

I've only been to Widnes once, and it was foggy, but on balance I'd rather live in Florida.

[Michael]

And their prices aren't even as inflated as ours... $230k median price = £122k, which gets you a garden shed somewhere in Peterbrough. Britain is going to fall hard. Oh yes.

I think we're going to see massive falls.....All previous booms have been nipped in the bud by the the stop phase of the stop-go economic cycle.....but this time the post-9/11 came along at a time when the market wouldve cooled under normal circumstances.....At the time the cuts were seen as short term but the expected inflationary pressure didnt materialise and raTES REMAINED LOW.........

Housing booms are caused by favourable economics but once they get to the stage we're at now the housing market controls the economy rather than the other way round............and when it slumps it'll take the rest of the economy with it.

[SHERWICK]

Yup.

Here's what you get for £195k (less than Rightmove's average asking price) in Orlando,Fl.

http://www.rightmove.co.uk/viewdetails-636...p;chnl=overseas

Here's what you get in Widnes for the same money.

http://www.rightmove.co.uk/viewdetails-846...=2&tr_t=buy

I've only been to Widnes once, and it was foggy, but on balance I'd rather live in Florida.

i'd rather live in widnes... because it has a 'w' in it...

[Xurbia]

£230K (US$430K) will get you this lovely place in sleepy Suffolk

Apologies to anyone who's already seen this on my thread in the 'House prices in your area' forum.

That is a real turd of a house. It reminds me of when I used to play with lego as a child.

[Realistbear]

£230K (US$430K) will get you this lovely place in sleepy Suffolk

Apologies to anyone who's already seen this on my thread in the 'House prices in your area' forum.

Mervyn King, the Governor of the Bank of England, said yesterday: "Relative to average earnings or incomes, or anything else you could look at, house prices do seem remarkably high."

(Telegraph.co.uk Thursday, 11th May 2006)

Relative to Gordon's boom in house prices, no wiser words have been spoken. And no clearly prophecy given in relation to the bust that will follow.

[PropertyGuru]

there was a news item (cant find the link) showing that its already YOY negative stateside. The figs for this month last year were revised downwards this month in order to make it look like its still above water. God knows why. Can't keep doing that every month!

[Smurf1976]

Just as it has done practically every time it has embarked on a rate raising cycle, the Fed has kept going until something breaks. That "something" being the housing market this time and either houses, stocks or the general economy in previous cycles. History repeats...