Thursday, Oct 26, 2006

Will US housing have a soft landing?...And are hard landings in store for the UK and Australia?

MoneyWeek: Will US housing have a soft landing?

The US housing slump seems to be worsening. September saw sales of existing US homes fall at an annual rate of 14.2%. It's the seventh month in a row that sales have fallen. More worrying was the fact that house prices fell 2.2% on last year. That was faster than August's fall, and the first back-to-back monthly price declines in 16 years.

But predictably, the realtors and Wall Street like to put a positive spin on these things. Many like to point to the UK and Australia, suggesting that similarly 'soft landings' may be in store for the US. So are they right to be this optimistic?

Posted by mary @ 10:37 AM (468 views)
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3 Comments

1. indiablue19 said...

"Stabilization of inventory to sales - at a very high level" in an interesting way to characterise a collapsing market....quite creative language in fact. Speaking to people stateside on both East and West coasts the picture doesn't sound encouraging since many have lost the stomach for property investment and are struggling to get free of their portfolio in expectation of worse to come. There are isolated parts of the market suffering most, as in California, Florida, parts of Arizona. Generally people in the States take such trends to heart and can be touted off property into a different investment arena quickly. I can imagine the downward slide will continue and take years to recoup at the rate it is falling. That is what those I know are planning for.

Thursday, October 26, 2006 11:23PM Report Comment
 

2. paul said...

The important thing about Australian house sales is the dominance of houe auctions, where prices are decided much more transparently - when prices rise they can be seen to rise and when they fall everyone sees them falling. In the US and UK, smoke and mirrors are used to hide falls in the selling prices.

Friday, October 27, 2006 09:17AM Report Comment
 

3. the bald man said...

UK soft landing? The bubble has not burst or landed yet.

Friday, October 27, 2006 09:18AM Report Comment
 

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