Monday, Sep 25, 2006

US House prices DROP for first time in 11 years!!!!

BBC News: Drop in US HP inflation (!)

The US housing market is continuing to cool
The price of existing US homes has shown its first annual decline in more than 11 years, a report has shown.


Posted by financial planner @ 04:56 PM (519 views)
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1. kpjcomp said...

> David Lereah, chief economist for the National Association of Realtors, said the market was cooling rather than collapsing.

> This was 1.7% below the price seen in August 2005

So this is what's known as cooling?.
Crikey!!, if you take into account inflation based on a CPI of 3.8%, Is'nt that a drop in real terms of 5.5%?
So if you bough a house a year ago for the average 176,000, you've just lost 9680 in a year.
Well if this is cooling, a crash is going to be very messy indeed.

> It keeps us on track to see the third-highest sales year on record.

Eh, don't get that remark at all. It totally contradicts the rest of the story.

Monday, September 25, 2006 06:06PM Report Comment

2. paul said...

Looks like he's desperately trying to sprinkle icing sugar on the turd.

The BofE will be watching this nervously and saying "no more rises!".

Monday, September 25, 2006 06:30PM Report Comment

3. harold said...

David Lereah, chief economist for the National Association of Realtor

Not a vested interest he.

Of course he's balking tollocks as any one with an internet connection can find out in about 5 seconds:

Monday, September 25, 2006 11:23PM Report Comment

4. Geed said...

Optimism, optimism. Trust the BBC to spin an optimistic story on the most blatent decline in the last decade. I would be more interested to see month on month percentage adjustments, I imagine these figures would hide much more telling and scary figures over the last 3-6 months.

Tuesday, September 26, 2006 03:43AM Report Comment

5. uncle tom said...

Unless the US housing market manages a surprise turnaround - which does not look very likely - the next phase will be the rapid drying up of equity withdrawal and as a consequence, a sharp drop in non-essential spending leading to unemployment, recession and further house price falls.

Interesting to see the BBC reporting this - will the BTL brigade still keep buying if they hear of market collapse across the pond?

Without them, the UK market will collapse in pretty short order.

Tuesday, September 26, 2006 12:35PM Report Comment

6. sovietuk said...

"a sharp drop in non-essential spending leading to unemployment, recession and further house price falls"

Coincidence or not I seem to be hearing alot of bad news around me very recently from friends about redundancies, businesses going under etc. These national GDP 2.X % growth figures that are perpetually trumpeted from the various propaganda sources don't seem to quite stack up with what is really going on.

Tuesday, September 26, 2006 01:05PM Report Comment

7. george monsoon said...

I work for a large American company here in the uk.
We have just had a bulletin regarding compulsory redundancy. The trim has begun.

Tuesday, September 26, 2006 01:44PM Report Comment

8. indiablue19 said...

Difficult to hide a rampaging elephant behind a Bush. Hard to believe as well that under the Clinton administration the national debt was all but a thing of the past. Living proof that civilised discussion is far less expensive than jets and bombs -- and not just in terms of money.

Interesting to note -- Americans generally aren't surprised by ups and downs of the housing industry. There will be no attempt to camouflage as there is here. Houses will be repossessed and resold without great gnashing of teeth. I find it amazing how much is done in the UK to mask the downturn.

Tuesday, September 26, 2006 03:01PM Report Comment

9. sirgoogle said...

May be with a few more weeks of this the media will realise that the big turn is coming - and then will start to talk it down (probably too much) as doom mongering will generate more revenue than talking it up. The Media love this stuff- it sell newspapers and advertising space.

Tuesday, September 26, 2006 09:41PM Report Comment

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