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Housing Bubble Finally Bursting

danarhea

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The signs have been around for quite a while, and now it is finally happening. The bad news is that this is going to affect the economy negatively. The good news is that homes will become cheaper, as prices fall back in line with reality.

Article is here.
 

KidRocks

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Pssst... New Home Sales Plummet in February

Will President Bush point this fact out to the American people in his next installment of his "selling of the war" via the main-stream media news conferences? Of course he won't but Kidrocks will and it will indeed be my pleasure.

Anything to drive his approval-ratings down further and thus guarantee a huge defeat for the Republican Party come November 2006!

And I didn't even mention the war in Iraq!

ENJOY!






http://news.yahoo.com/s/ap/20060324/ap_on_bi_go_ec_fi/economy

WASHINGTON - Sales of new homes plunged by the largest amount in nearly nine years in February while the median price of a new home dropped for the fourth straight month, providing fresh evidence that the nation's once-booming housing market is cooling off.

ADVERTISEMENT

The Commerce Department reported that sales of new single-family homes dropped by 10.5 percent last month to a seasonally adjusted annual sales pace of 1.08 million homes. It was the second straight monthly decline and was much bigger than the small 2 percent dip that Wall Street was expecting.

The drop in new home sales followed news Thursday that sales of previously owned homes actually rose by a stronger-than-expected 5.2 percent last month following five straight monthly declines. Analysts said the trend in both reports pointed to a slowing housing market after five record-setting years.

The slowdown in sales was putting pressure on prices. The median price of a new home sold last month dropped to $230,400, down by 1.6 percent from January and off 2.9 percent from February 2005. The median is the mid-point where half the homes sold for more and half for less...
 

danarhea

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Re: Pssst... New Home Sales Plummet in February

KidRocks said:
Will President Bush point this fact out to the American people in his next installment of his "selling of the war" via the main-stream media news conferences? Of course he won't but Kidrocks will and it will indeed be my pleasure.

Anything to drive his approval-ratings down further and thus guarantee a huge defeat for the Republican Party come November 2006!

And I didn't even mention the war in Iraq!

ENJOY!






http://news.yahoo.com/s/ap/20060324/ap_on_bi_go_ec_fi/economy

WASHINGTON - Sales of new homes plunged by the largest amount in nearly nine years in February while the median price of a new home dropped for the fourth straight month, providing fresh evidence that the nation's once-booming housing market is cooling off.

ADVERTISEMENT

The Commerce Department reported that sales of new single-family homes dropped by 10.5 percent last month to a seasonally adjusted annual sales pace of 1.08 million homes. It was the second straight monthly decline and was much bigger than the small 2 percent dip that Wall Street was expecting.

The drop in new home sales followed news Thursday that sales of previously owned homes actually rose by a stronger-than-expected 5.2 percent last month following five straight monthly declines. Analysts said the trend in both reports pointed to a slowing housing market after five record-setting years.

The slowdown in sales was putting pressure on prices. The median price of a new home sold last month dropped to $230,400, down by 1.6 percent from January and off 2.9 percent from February 2005. The median is the mid-point where half the homes sold for more and half for less...
I beat ya to it, bud :)
 

Deegan

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It has gotten ridiculous, especially on the west coast, where a 1,200 sq ' home is selling for 250,000, to 300,000 dollars. I have been waiting for these prices to return to, as you say Dan, a realistic sum, so I can buy a home in Atlanta. Even there, homes that are realistically 250,000 dollars, are anywhere from 400,000 to half a million. A whole lot of folks have gotten rich off of this rise in cost, but I have always remained sensible about the actual property I own. It may list as this amount, but I am always aware that this could change, in fact would change.
 

danarhea

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Deegan said:
It has gotten ridiculous, especially on the west coast, where a 1,200 sq ' home is selling for 250,000, to 300,000 dollars. I have been waiting for these prices to return to, as you say Dan, a realistic sum, so I can buy a home in Atlanta. Even there, homes that are realistically 250,000 dollars, are anywhere from 400,000 to half a million. A whole lot of folks have gotten rich off of this rise in cost, but I have always remained sensible about the actual property I own. It may list as this amount, but I am always aware that this could change, in fact would change.
Prices have been ridiculous here in Houston. I like to talk about my house as if I still have it, but it burned up in 2001. We have been renting a condo since then and waiting for prices to fall. Looks like we will be buying again early next year. That is when prices will be a lot lower compared to now. It will probably be a condo or a townhome this time. Since living in one, we have enjoyed the maintenence-free part of it, although fees are factored into our rent, and fees have to be paid monthly. Besides, the the kids are grown, and went on their own about 15 years ago. Dont need a whole house any more - Especially one with a water heater on the garage floor, which could cause a fire. Thats how we lost our last one. LOL.

BTW, fire insurance sucks.
 
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Calm2Chaos

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Thats odd.

I just heard not more then 24 hours ago ( I can't remeber were) that the housing boom is continuing on and is showing little signs of slowing down

MOre of a hiccup then anything else.... BUt damm I wouldn't mind if housing prices came down for a while .. Least till I buy mine..lol
 
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Calm2Chaos

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Re: Pssst... New Home Sales Plummet in February

Just can't help yourself can ya ....LOL

Your so desperate to take a shot that you use this....LOL I do find you amusing...
 

RightinNYC

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Psst....guess it doesnt really matter:

U.S. existing home sales soar, jobless claims down
WASHINGTON, March 23 (Reuters) - U.S. existing home sales rose 5.2 percent in February, defying forecasts for a slowdown, as warm weather boosted single-family and condo sales, according to trade group data on Thursday.

Sales of existing U.S. homes rose to a 6.91 million unit annual rate in February, halting a string of monthly declines, after January's upwardly revised 6.57 million unit pace, the National Association of Realtors said.

Analysts had expected sales to slow to a 6.50 million unit pace in February, and the surprising increase sent the dollar rallying against most major currencies. It pushed U.S. Treasury debt prices lower because the report reinforced expectations of more interest rate hikes from the Federal Reserve.
Existing home sales, which account for about 85 percent of the market, reflected the closing of contracts signed in January, when record-warm temperatures brought out more buyers. New home sales, which account for the remaining 15 percent, are counted when a contract is signed.

``The general consensus is although the housing market is slowing down we're returning to more healthy levels,'' John Sauro, president of North Atlantic Mortgage Corp. in Silver Spring, Maryland, said in an interview on March 16.
http://www.bloomberg.com/apps/news?pid=10000087&sid=ak3nY_rjHW9M&refer=top_world_news
 

easyt65

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:confused:
I heard an economic report that said there was a thought that the Housing bubble was bursting last month but that sales had actually climbed.

I have heard for months and months now that this 'bubble' was going to burst 'any day now'.

I heard the report to day from 1 place saying its happeneing, and I hear from another source that the market is stable/growing.

:shock: WTH is going on? Are the different reports dependent upon the person reporting's agenda/:spin: ? Or is there a REAL bubble bursting?
 

Deegan

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danarhea said:
Prices have been ridiculous here in Houston. I like to talk about my house as if I still have it, but it burned up in 2001. We have been renting a condo since then and waiting for prices to fall. Looks like we will be buying again early next year. That is when prices will be a lot lower compared to now. It will probably be a condo or a townhome this time. Since living in one, we have enjoyed the maintenence-free part of it, although fees are factored into our rent, and fees have to be paid monthly. Besides, the the kids are grown, and went on their own about 15 years ago. Dont need a whole house any more - Especially one with a water heater on the garage floor, which could cause a fire. Thats how we lost our last one. LOL.

BTW, fire insurance sucks.
I was going to ask you about the insurance, but I guess that last statement says it all. Sorry to hear about that, that has to suck.;)
 

RightinNYC

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easyt65 said:
:confused:
I heard an economic report that said there was a thought that the Housing bubble was bursting last month but that sales had actually climbed.

I have heard for months and months now that this 'bubble' was going to burst 'any day now'.

I heard the report to day from 1 place saying its happeneing, and I hear from another source that the market is stable/growing.

:shock: WTH is going on? Are the different reports dependent upon the person reporting's agenda/:spin: ? Or is there a REAL bubble bursting?
New home sales, which account for 15% of the housing market, have backed off their record highs.

Existing home sales, which account for 85% of the housing market, jumped significantly more than expected.
 

Deegan

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Well I don't think there will be a "burst" so to speak, it will just become stagnant because people are no longer willing to pay these exorbitant amounts of money, for a piece of land, and some wood and stone. They will have to evaluate this at some point, and be more realistic when the banks and others value these properties.
 

Donkey1499

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danarhea said:
The signs have been around for quite a while, and now it is finally happening. The bad news is that this is going to affect the economy negatively. The good news is that homes will become cheaper, as prices fall back in line with reality.

Article is here.
This isn't true in Florida. The market in FL is catered towards the buyer right now. Especially in Pasco and Citrus counties.
 

danarhea

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RightatNYU said:
New home sales, which account for 15% of the housing market, have backed off their record highs.

Existing home sales, which account for 85% of the housing market, jumped significantly more than expected.
New home sales is a leading indicator, which means that existing home sales are not that far behind. Rather than existing home sales dropping significantly, prices for them will fall. That is already happening here in Houston, in spite of the population increase due to the many thousands who moved here from New Orleans last year after Katrina hit.

EDIT: Houston is also double the national average in foreclosures.
 
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RightinNYC

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danarhea said:
New home sales is a leading indicator, which means that existing home sales are not that far behind. Rather than existing home sales dropping significantly, prices for them will fall. That is already happening here in Houston, in spite of the population increase due to the many thousands who moved here from New Orleans last year after Katrina hit.
Still haven't seen anything that would prove this:

"The bad news is that this is going to affect the economy negatively."
 

danarhea

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RightatNYU said:
Still haven't seen anything that would prove this:

"The bad news is that this is going to affect the economy negatively."
A Housing crash would be worse than a stock market crash, since homeowners have much more invested in them than in stock portfolios. However, as far as housing goes, it doesnt crash, but prices do take a beating, and that does affect the economy. Bursting bubbles in the housing market are not new either. They previously happened in 1973–1975 and 1989–1993.

Read this article from the Ludwig von Mises Institute, which explains it very well.
 

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Deegan said:
It has gotten ridiculous, especially on the west coast, where a 1,200 sq ' home is selling for 250,000, to 300,000 dollars.
I thought cheap illegal alien labor was supposed to make these things cheaper?A 8x4 sheet of plywood is around $20-$40(depending on thickness and grade)A 10' long piece of construction grade 2x4s is only around $3-$5.A tile or brick is around 29 cents to $6(depending on grade and type)
 

Indy

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Hey James, is your signature quote from Michael Savage supposed to make him sound smart or stupid? He sounds kinda dumb to me with what he said but I was just wondering your point of view on it. Purely off topic of course :)
 

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mnpollock said:
Hey James, is your signature quote from Michael Savage supposed to make him sound smart or stupid? He sounds kinda dumb to me with what he said but I was just wondering your point of view on it. Purely off topic of course :)
Savage is correct on that issue.But why derail or hijack the thread to find out what I think on a issue not even related to this thread?
 

Indy

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jamesrage said:
Savage is correct on that issue.But why derail or hijack the thread to find out what I think on a issue not even related to this thread?
Geez, calm down man. I was just curious.
 
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