Analysis Topic: Housing Market Price trends
The analysis published under this topic are as follows.Tuesday, August 31, 2010
Little Hope for the U.S. Housing Market / Housing-Market / US Housing
Jon D. Markman writes: Just when you thought the housing market couldn't get worse, it did.
New single-family home sales slumped 12.4% in July to a record-low annual rate of 276,000 units, as homebuyers shunned their realtors in the absence of government support. The consensus expectation was for a slight up-tick to a 333,000 unit annual rate, so I suppose it's time to throw out the models. Sales over the prior three months were also revised lower by 9,000 units.
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Sunday, August 29, 2010
U.S. Home Sales Drop 27% In July And Things Are Only Going To Get Worse / Housing-Market / US Housing
On Tuesday the National Association of Realtors announced that existing home sales in the United States dropped a whopping 27.2% in the month of July. The consensus among analysts was that we would see a drop of around 13 percent, so when the 27 percent figure was announced it sent a shock through world financial markets.
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Friday, August 27, 2010
Why Are U.S. Home Sales Plummeting? Huge Waves of Foreclosures Coming down the Pike / Housing-Market / US Housing
The government opted to try to prop up prices. Indeed, as I have repeatedly pointed out, the government's entire strategy has been to try to artificially prop up the prices of all types of assets.
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Friday, August 27, 2010
U.S. New Home Sales Housing Market Forecast 2010 to 2020 / Housing-Market / US Housing
A bubble is like if you have a flat pond, and you throw a pebble in.
First there is an “up” wave; that you can ride (if you are smart or lucky); then there is a “down” wave, and the size and the shape of the down that follows the up is predicated by the size and the shape of the preceding up.
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Friday, August 27, 2010
Record Drop in U.S. Home Sales / Housing-Market / US Housing
Sales of existing US homes in July plunged by a record 27.2 percent from the previous month, according to a report released Tuesday by the National Association of Realtors.
The virtual collapse in home sales affected every region of the country and was more than twice as bad as anticipated by economic analysts, who had forecast a drop of 12.1 percent. Sales fell to 3.83 million units, compared to June’s downwardly revised figure of 5.26 million.
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Thursday, August 26, 2010
Moribund U.S. Housing Market Threatens to Kill Economic Recovery / Housing-Market / US Housing
Don Miller writes: The weak housing market, which has traditionally led the U.S. economy out of recent recessions, this time may put an end to the economic recovery.
Existing home sales plummeted by a record 27% to their lowest level in 15 years in July and inventories soared, the National Association of Realtors (NAR) reported yesterday (Tuesday). Home re-sales, which account for 90% of the total market, dropped to an annual rate of 3.83 million in July. And inventories rose to 12.5 months from 8.9 months in June, putting them at their highest level in more than a decade.
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Wednesday, August 25, 2010
U.S. Housing Market Holocaust, Existing Home Sales Crash / Housing-Market / US Housing
Don't look now, but someone just pushed the housing market off a cliff. The National Association of Realtors announced on Tuesday that the sales of existing homes fell a staggering 27.2 percent to a seasonably adjusted rate of 3.83 million units. This is the lowest number of sales since 1995. The reaction on Wall Street has been swift, shares plunged in a wild sell-off that pushed stocks down more than 100 points in a matter of minutes. US Treasuries rallied on the news sending bond yields lower as jittery investors sought safety from the ongoing avalanche of dismal economic data. The 10-year slid to 2.49% while the 2 year note dipped to 0.46%. Bond yields are a gauge of investor pessimism. At present, confidence in the management of the economy is at its nadir.
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Tuesday, August 24, 2010
U.S. Existing Home Sales Crash 27%, Treasury Bond Yields Hit New Lows / Housing-Market / US Housing
In yet another clean sweep, the third in a week or so, sales of existing homes dropped twice as much as expected, worse than every economist forecast, to a 15 year low. Inventory soared to 12.5 month, the highest since 1999. Treasury yields plunged with yield on the 10-year note falling as low as 2.50 and the 2-year note hitting a new all-time low at .47%.
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Tuesday, August 24, 2010
How Investors Can Earn 18% Without Buying a Single Stock / Housing-Market / Investing 2010
I recently put one of my townhomes on the housing market to sell. It has been completely remodeled and is in a great location at a price that is the lowest in the area and by far the cheapest when compared to similar units in square footage, location and finish out. (No, I'm not trying to sell you my home.)
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Monday, August 23, 2010
Let the U.S. Housing Market Normalize! / Housing-Market / US Housing
Recently there have been some encouraging signs that Congress is finally willing to admit what should have been evident two years ago. Even after a $150 billion bailout, Fannie Mae and Freddie Mac are still bankrupt and should be abolished. Indeed Rep. Barney Frank, a longtime champion of Fannie and Freddie has made a few statements alluding to this and I have signed on to a letter asking him to clarify his remarks and hold hearings on this topic. There seems to be a growing consensus in favor of abolishing Fannie and Freddie. This is the good news.
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Monday, August 23, 2010
U.S. Housing Market and Sector Stocks at Significant Crossroads / Housing-Market / Housing Stocks
In 2005 I used cyclical analysis to identify the top in housing. That topping process was covered in a series of articles posted here in 2005 and into 2006, as the topping process matured and then eventually became obvious to all. Cyclically, housing is now at another important crossroads.
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Sunday, August 22, 2010
First Time Buyer UK Housing Mortgage Market The Toughest For Decades / Housing-Market / UK Housing
Today's first time buyer entering the housing market will borrow more money and raise a larger deposit than at any other point over the past 25 years, with the price of a first home now 4.6 times higher than the average gross salary in the UK. This growing financial commitment means that it is more important than ever for first time buyers - who account for 38% of all house purchases in the UK* - to be able to sift through the mass of information available and ensure they can make educated choices about their house purchase - from considering whether to rent or buy, through to putting in an offer, exchanging contracts and moving in.
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Thursday, August 19, 2010
Banks Enjoying Record Profit Margins on UK Mortgages at Borrowers and Tax Payers Expense / Housing-Market / Mortgages
Britain has been increasingly operating under an artificial tax payer supported banking system for the past 2 years that exists primarily to funnel tax payer cash onto the balance sheets of the bailed out bankrupt banks by means of capital injections, artificially low interest rates to generate unprecedented margins on loans against savings rates that persistently pay significantly below the rate of inflation and many other mechanisms such as Quantitative Easing which allows banks to borrow from the Bank of England at 0.5% and invest in longer dated government bonds at zero risk at 3.5%, thus generating a 3% risk free profit on tax payer cash.
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Tuesday, August 17, 2010
A Permanent U.S. Housing Market Collapse? / Housing-Market / US Housing
The recent chaos that erupted when 30,000 people waited hours in the Atlanta, Georgia heat to receive applications for subsidized housing is a mere symptom of a worsening national problem.
The housing market appears to be on a never-ending downward spiral, with the much-discussed "recovery" always around the next corner.
Sunday, August 15, 2010
U.S. Housing 10% Below Fundamentals, BubbleOmics Says Must Drop 15% More / Housing-Market / US Housing
From Felix Salmon today: The government does need to get the housing market going, because the alternative is unthinkable: if the government just kicked away the housing market’s multi-trillion-dollar scaffolding overnight, as Santelli suggests it should, then the entire banking system would become insolvent, and we’d soon be reminiscing wistfully about how painless and shallow the 2008 financial crisis was, compared to the one of 2011. http://seekingalpha.com/..
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Thursday, August 12, 2010
First Time Buyers are Seizing the Moment Get Mortgages / Housing-Market / Mortgages
The First Time Buyer mortgage market has seen an increase in activity of late. Latest figures released by the Council of Mortgage Lenders have shown a 20% rise in approvals for first time buyer mortgages in June.
Moneyfacts research shows that the current average two year fixed first time buyer rate for borrowers with a 10% deposit is 6.15%, down from 6.48% six months ago.
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Tuesday, August 10, 2010
The Forgotten U.S. Housing Market Foreclosure Crisis / Housing-Market / US Housing
Faiz Shakir writes: The economic meltdown of 2008 grew out of a foreclosure crisis, as Wall Street banks drove lenders to make loans that were then securitized and sold around the world, in an unregulated slew of credit products. This inflated a housing bubble that, when it burst, severely damaged an already weak economy, sent millions of homeowners into foreclosure, and put millions more out of work, leading to even more foreclosures as unemployed workers began to miss mortgage payments.
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Monday, August 09, 2010
Chinese Real Estate The Mother Of All Bubbles / Housing-Market / China Economy
In the latest issue of The Casey Report Bud Conrad does a fantastic job analyzing the truth about Asia. Japan is a ticking demographic time bomb. The Chinese government has created the mother of all bubbles and when it pops, it will be felt around the world. The China miracle is not really a miracle. It is a debt financed bubble. Sound familiar?
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Thursday, August 05, 2010
IMF Warns U.S. Real Estate Sectors Could Bring Banking Crisis 2.0 / Housing-Market / US Housing
The International Monetary Fund (IMF) stress tested 53 large banking holding companies and published its findings last month. The report concluded that despite restoration of some stability, there remain certain important risks to the U.S. financial system and economy mainly coming from the real estate sectors:
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Wednesday, August 04, 2010
BubbleOmics 101: China Does Not Have a Residential Property Bubble / Housing-Market / China Economy
Bubbleomics 101:
1: Fundamental Price = Demand divided by Supply (Adam Smith)
2: If not – sorry folks…the market’s not working properly (Albert Eintein?)