Realistbear Posted September 8, 2006 Share Posted September 8, 2006 (edited) http://www.builderonline.com/industry-news...rticleID=360855 Housing Market Forecast Worsens Source: USA TODAY Publication date: 2006-09-08 By Noelle Knox The outlook for the nation's housing market is even weaker than earlier projected, mainly because sellers are refusing to cut prices enough after the towering price gains of the boom years, the National Association of Realtors said Thursday. The NAR's lower sales forecast followed profit warnings this week from two of the largest home builders , Beazer Homes USA and KB Home. A Federal Reserve official also indicated that interest rates might resume their upward climb, which would make it harder for buyers to afford homes. The cascade of bad news weighed on stocks, which fell as investors worried about the ripple effect on the economy. "Sellers are more stubborn than I expected," said David Lereah, the NAR's chief economist. "For five years in a row, it was a seller's market. They were calling all the shots, and they got accustomed to it." The NAR now expects sales of existing homes to fall 7.6% this year, worse than the 4.4% drop predicted in January. New home sales are projected to plunge 16% -- far below the 6% originally seen. Prices are still expected to rise above last year's highs, if just barely. "Folks are still thinking they can get top dollar for their homes," says Tom Rath, an agent at Re/Max Premier in Ocala, Fla. "I don't think reality has set in." We can expect the same headlines and circumstances in about 6 months time just as the winter sets in. http://money.cnn.com/2006/09/08/news/econo...ey_news_economy HSBC: Risk of U.S. recession growing Income of most Americans are falling and housing slowdown threatens economy despite companies doing well. September 8 2006: 11:16 AM EDT NEW YORK (Reuters) -- Investment bank HSBC has revised downward its forecast for 2007 economic growth and cautioned that the risk of an outright recession is growing as a retreat in housing threatens household balance sheets. Ah-tishooooooooooooo Edited September 8, 2006 by Realistbear Quote Link to comment Share on other sites More sharing options...
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