Foros de la Plataforma por una Vivienda Digna

[billy]

Housing hard landing continues

“The fabled engine of our economy is clearly unwinding. The sobering implications, however, were lost on the stock market last Tuesday. That’s when a weaker-than-expected PPI number incited the umpteenth Fed-is-done rally. What folks ignored that day: News from the National Association of Homebuilders that its Housing Confidence Index fell to the lowest level since early 1991.

That, ladies and gentlemen, is how Alan Greenspan managed to make folks’ lives ultimately even worse, in attempting to bail out his equity bubble with a real-estate bubble. Let’s never forget who the un-indicted architect of this mess was: Alan Greenspan and the other merry pranksters at the Fed.



Of course, those folks who didn’t learn anything from the equity mania, and who will turn out to have gotten themselves trapped in the housing mania, really have only themselves to blame. As I have been warning for at least a couple of years now, all of this was going to be wonderful until it wasn’t. That moment in time is upon us.”

And look what is happening to housing in Australia which is about six months ahead in their housing bubble.

“A THREE-BEDROOM brick-veneer house in St Clair sold for just $260,000 at the weekend - down about 42 per cent from its last sale at $450,000 in 2003 in a further sign of the depressed state of the Sydney property market.

Only one person bid on the house in the city’s west. The mortgagee sale was forced after the owners could not meet the interest payments on the $405,000 they borrowed to buy the house at the peak of the market.

Auction clearance rates are hovering around 48 per cent since the recent interest rate rise, but plummeting property prices have meant many vendors are confronting negative equity, where they owe more on the property than it is worth.”

http://www.resourcebullmarket.com/2006/08/21/housing-hard-landing-continues/