Why are there any questions? Isn't this all so OBVIOUS? Isn't supply/demand/prices taught in second grade?
MarketWatch: Weak spring may drive home prices lower - Tough sales season, rising inventories further pressure housing market
BOSTON (MarketWatch) -- A spring home-selling season that's looking like a bust and pressure from growing inventories of houses in the resale market should intensify home-price declines in the second half of 2007, Wall Street analysts say
"We think the housing downturn has decisively moved to its second act of falling prices," wrote Deutsche Bank in a report to clients Monday.
Yet the picture could get worse if home-price declines catch up with falling sales, and home builders' profit margins are further squeezed.
"With the first act consisting of significant retrenchments in volumes, the second act is one with home prices falling back to more equilibrium levels after a period of breathtaking increases during the housing boom," Deutsche Bank said.
During first-quarter conference calls, home-builder executives said they're cutting prices or offering more incentives to make up for sales-volume declines. A key dilemma they've faced the past year and a half during the housing pullback is balancing volume and prices with an eye on protecting profit margins.
20 comments:
Must be enormous pressure on congress to inflate the USA out by printing more money then toilet paper at the expense of the economy and all reason.
We will be wheeling shopping carts filled with 100s of greenbacks out of Costco this time next year.
In LAUSD (L.A. Unified school district) they teach that in 11th or 12th grade. Remember this is the REIC we're talking about
Actually, it is pretty obvious. And simple. But we are still in the dark ages regarding how scientific our thought processes are. It starts with a simple question: what are house prices based upon? 99% of people just accept prices and price trends as they are and don't even consider such time-tested principles as supply, demand, incomes, rents.
Lemmings say that housing is sooooo different because you actually live in your house. Thing is, you actually drive your car and you actually eat your food and you actually watch your tv. All of these items are effectively indispensible consumables, like your house, we just don't have an irrational cultural notion of their value fomented by the REIC and banking system.
May 16 8:30 AM Housing Starts
May 16 8:30 AM Building Permits
Reality is not Reality...who knew?
http://tinyurl.com/2fdrgj
AL-QWEEFIE bitches like a schoolgirl about the MSM "lies" all day long. Then he reads an article he agrees with and all of a sudden the MSM aint so bad after all.
Come on AL-QWEEFTER be consistent. Either you trust the MSM or you don't.
I posted an ad on craigslist to sell my car. I got a few calls, a few lookers and of course the scammers. Well eventually someone bought it. Came to see it yesterday morning, we took it out for a drive, he liked it, took it to a mechanic to check it out and he bought it later in the day. Paid in cash, $12,000 (money verified to be legit at the bank, I wasn't born yesterday). Got to chatting with the buyer about what he does. Turns out he's a mortgage broker. I didn't dive into his personal finances or anything, but I'm guessing if he has $12K sitting around in cash to buy a car, he's not exactly eating Ramen and business must not be that bad.
April housing starts increase to 1.528 million, beating projections; permits fall 8.9 percent to 1997 low. More soon
if money is that worthless to you why not give me all of yours? I'll even give you the same weight in toilet paper
WOW ...WHAT A CRASH!!!!!!!
Still waiting ...dopes!
I just sold my Mercedes for $45K cash to a realtor. He doesn't seem to be starving. Believe me, it's the truth
Countrywide ADDING!! 2,000 jobs??
http://washington.bizjournals.com/losangeles/stories/2007/05/14/daily6.html
Yet the picture could get worse if home-price declines catch up with falling sales, and home builders' profit margins are further squeezed.
Hmm... that's pretty much certain to happen.
the realtors i know are starving for a sale.
the mortgage guys i know are looking for a job and watching the Price Is Right on CBS
May 16, 2007 2:15 PM
Hang in there.
I'm sure many realtors and mortgage brokers put away money during the good years and have plenty of cash to buy cars. Doesn't mean the housing market isn't tanking.
WOW, $45K in cash!!! Why do people always mention that it was cash? What else are you going to get paid in pickles?
It's too bad builders cut future permits to the lowest level in 17 years. I was hoping they were going to keep putting even more fuel on the fire.
We've got enough logs though to keep this one burning for a long, long time.
At the same time we have record inventory, we have plummeting demand, and even more inventory coming
Get popcorn.
David said...
WOW, $45K in cash!!! Why do people always mention that it was cash? What else are you going to get paid in pickles?
May 16, 2007 4:48 PM
Oh gee I dunno an auto loan check? Moron.
Bay Area's housing prices buck national trend
Median cost is up 6.6%, driven by strong upscale market, but number of homes sold is down 20%
Carolyn Said, Chronicle Staff Writer
Thursday, May 17, 2007
What's your comments about this news?
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