Is the Housing Bubble Bursting?
The latest numbers certainly show a slowing. Existing home sales are down by 10 percent from their peaks last year. Prices have stabilized on a year over year basis (down slightly after adjusting for inflation), and inventories are building. It is worth noting in the latest report that the inventory of unsold condos stood at 8 months of sales in the June report.
Also, it is important remember that the existing homes data refers to sales closed in June. Since it typically takes 6-8 weeks to close a contract, the June sales are most showing information about contracts signed in April and May.
Also, it is important remember that the existing homes data refers to sales closed in June. Since it typically takes 6-8 weeks to close a contract, the June sales are most showing information about contracts signed in April and May.
posted by Dean Baker @ 6:29 AM
14 Comments:
At 10:11 AM,
Anonymous said…
My experience from living through the "Great Recession" real estate and economic crash that tore through New England in the early 1990's makes me hesitant to call the current slowdown a bursting bubble. During the Great Recession there was no doubt whatsoever that real estate had crashed. Collapsing prices and hugely growing inventories were obvious to even casual observers and deterioration was evident from month to month and even sometimes from week to week.
The fact that people are uncertain whether the current situation really marks the bursting of a bubble is enough to convince me that it isn't. If there really were a bubble-bursting in progress we'd all know it.
Peter
Iron Rails & Iron Weights
At 5:05 PM,
Shag from Brookline said…
The "Great Recession" in the 1990s? Did I miss it? I didn't miss the "Great Depression", being born in 1930 in New England's Boston. As to bubbles, I remember the punch line of an old joke that I probably heard in the late 1930s: A voluptuous young lady appears and announces, "Hi, I'm Bubbles" as the singer was finishing his rendition of the Bubbles refrain of the day.
This real estate bubble has had quite a rise, such that for a while real estate was close to being a liquid asset. But now we will need other liquid assets to forget about this bubble.
At 9:10 PM,
Anonymous said…
Let's celebrate the bursting of housing bubble.
The US economy is flexible. Really, it is attracting capitals around the world; just look at everything from Wall street to Wallmart,oil... you will see another bubble inflating as another deflating. US capitalism is kicking butt.It is the game where the house is taking the profits. let's embrace the housing downturn and another sector upturn in near future.
Bye bye bubble.
At 3:37 PM,
Anonymous said…
As a potential holiday home buyer in the States I have become concerned that prices are reducing in some areas.
Unlike most European countries we are restricted by how much time we can visit our holiday home to the USA, so I would look for something beyond quality usage and that would be a good return on my investement.
This is making me think twice about buying out there, when I could buy a property in most areas of Europe and have a better ocupancy time and potentialy a better return should we choose to sell up and move on. It is a real shame as we love our trips to the USA. the property market has slowed down in the UK too, but not to the satge where prices are lower than last year.
Mark
Car Breakdown Cover
At 5:34 PM,
Amy said…
Investing in real estate just isn't as profitable nowadays as it was a decade ago.
The party's over (at least for now).
At 7:45 PM,
sexy bikinis said…
I'm from MD. My neighbors have been listing homes for up to $50,000 less than just months ago. I see no reason for this bubble "bursting" all of a sudden or why homeowners should bear the brunt of any fallout. The economy and the still low interest rate do not support this "burst" bubble. I believe it is mostly media hype and perhaps maybe too many homes on the market at one time. Our homes have not lost value. The market has simply slowed. We must be patient.
At 3:51 PM,
humidifiers said…
It is approaching presidential election season. Bush in 2000 harped on how the economy was faltering. A self-fulfilling prophecy in effect. Likewise, the Democrats will raise the alarm signal that excessive borrowing and the housing market means Bush policy is a failure. People listen. And react by being cautious which brings about that self-fulfilling prophecy again....so I don't look for 07-08 to be banner years but rather to be rather slow..soft landing? perhaps. But I don't think the full impact of the housing sector is in the market place yet.
At 5:19 AM,
Anonymous said…
I'm in the construction business in NE Ohio. It seems to me like the housing bubble is about to seriously burt due to rising interest rates and all-time high material prices. There are also lots of unsold new homes out there.
Anyone agree with me?
magnetic bracelet clasp
At 5:28 PM,
Anonymous said…
酒店打工
酒店兼職
台北酒店
打工兼差
酒店工作
酒店經紀
禮服店
酒店兼差
酒店上班
酒店PT
酒店
At 10:34 AM,
Anonymous said…
酒店兼職
酒店
酒店工作
禮服酒店
酒店兼差
酒店打工
酒店經紀
酒店上班
台北酒店
酒店pt
兼差打工
打工兼差
酒店正職 酒店賺錢 酒店喝酒 酒店消費 喝花酒 粉味 喝酒
At 5:25 AM,
mktg said…
We are China online Wholesale Beads store, China Wholesale Beads is your best choice. China jewelry findings and jewelry making supplies for wholesale.We offer you Jewelry Supplies, Jewelry Findings, Jewelry Beads at the cheapest price. We are specialized in Wholesale Jewelry Supplies, Wholesale Jewelry Findings, Tibetan Style Beads, Tibetan Silver Beads, Tibetan Silver Charms, Wholesale Acrylic Beads, Wholesale Crystal Beads, Wholesale Jewelry Charms, Pandora Style Beads, Lampwork Beads, Metal Beads, Gemstone Beads, Wood & Nut Beads. Buy more get more discount.
At 10:03 PM,
feather earring said…
Pearls must be drilled in order to make a classic strand, Freshwater Pearl Necklace or bracelet possible. Often, a blemish can be created on the Pearl Jewelry Set surface right around the hole. If a pearl has been dyed, there will sometimes be a concentration of color around the Freshwater Pearl Pendant. The pearls are traditionally strung on high quality silk cord that is knotted between each Freshwater Pearl Ring to separate, display and protect each pearl from the one next to it. If the Jewelry Clasps should break only one pearl will fall from the string and potentially roll away. Sterling Silver Pearl Jewelry between each pearl keeps them from rubbing against each other, which can do damage over time. Whether it is a tiara for the bride or accessories for the bridesmaids， glass pearl beads will look amazing. Fashion and fabulous feather earring are ideal for counter display and gift giving. wholesale jewelry supplies from online store for small business is a great choice. china jewelry
At 10:12 PM,
fashion jewelry wholesale said…
fashion jewelry wholesale
fashion jewelry
China fashion jewelry wholesale
fashion jewelry
china fashion jewelry
wholesale fashion jewelry
fashion jewelry wholesale China
fashion jewelry online
fashion jewelry wholesale
CZ jewelry wholesale
Cubic Zirconia jewelry wholesale
crystal jewelry wholesale
pearl jewelry wholesale
fashion jewelry wholesale
silver jewelry wholesale
stainless steel jewelry wholesale
At 3:46 AM,
Anonymous said…
The site seems to be interesting..!!
resorts in wayanad
Post a Comment
Links to this post:
Create a Link
<< Home