I never thought I'd see the day that a major US investment bank admitted what we've known here at HP for years - that the United States housing market will suffer a historic crash, and the drop from peak to trough will be sickening. Man, has the world gone HousingPANIC?
IF YOU ARE CONSIDERING BUYING A HOME TODAY - DON'T. IF YOU'RE TRYING TO SELL YOUR HOME, CUT THE PRICE, CUT IT FAST AND CUT IT HARD. YOU'LL BE LUCKY TO GET OUT. IF YOU'RE LISTENING TO A REALTOR ON COMMISSION, WELL, THEN YOU'RE SIMPLY A FOOL.
A 15% nationwide decline will be horrific folks. A 30% decline will stun even me. I can't even picture how devastating that will be, for the homedebtors who listened to realtors on commission, and for the American and world economies. Banks will fail. Millions will lose their jobs. Cities will go bankrupt. And the US dollar will collapse.
But I think we all need to get our heads around that number folks. A 30% nationwide decline would mean places like Phoenix, Tampa, San Diego, Vegas, Naples, Boston, DC, Detroit, Sacramento and more will see 50%+ declines, and will not just see recessions, they'll see true 1920's type depressions.
Wow. This is gonna be ugly. Get ready. We predicted it, but now we have to deal with it.
NEW YORK (Reuters) - The housing slump has increased the chance of a U.S. recession and will further weaken home prices, Goldman Sachs Group said on Tuesday, cutting its stock recommendations on a slew of companies vulnerable to sluggish growth.
In a grim assessment of the U.S. economy's health, the investment bank said the Federal Reserve will have to cut its lending rate to banks by 1-1/2 percentage points to 3 percent in the next six to nine months to avert a recession.Home prices will likely decline by 15 percent from their peak. But if the United States enters a recession -- which Goldman expects the economy to narrowly escape -- home prices could fall as much as 30 percent nationwide, it said.