Study: Housing Market Getting Worse

Submitted by
CalculatedRisk on Tue, 08/29/2006 - 12:17pm (11 comments)
Cal wrote on Tue, 8/29/2006 - 1:35 pm

Anyone know where to get our hands on that survey, sounds like dynamite

Gore wrote on Tue, 8/29/2006 - 1:48 pm

That's quite a scoop there, one that should ensure it's author the Pulitzer. What about interest rates, that's a subject nobody is really looking at as well.

edhopper wrote on Tue, 8/29/2006 - 2:00 pm

I'm sure buyer's sentiment will turn around once home prices fall back to normal affordability levels.
Around 40% - 70% from today's prices.

HARM wrote on Tue, 8/29/2006 - 2:35 pm

"Consumers are just of the mindset at this point that it is not the time to be buying a home and this becomes increasingly problematic for housing," Murray said.

Not quite. Consumers are of the mindset that today's prices are far beyond what is sane, affordable, and supported by incomes and equivalent rents.

CalculatedRisk wrote on Tue, 8/29/2006 - 2:53 pm

Gore, the somewhat salient piece of information was that August sales stunk. Of course the seasonally adjusted MBA purchase index and the NAHB Index both indicate August was worse than July for the housing market. So I guess we already knew everything in this "study".

Best Wishes.

cm wrote on Tue, 8/29/2006 - 2:54 pm

Shoot. No more easy money shoving purchasing agreements under people's noses.

DILBERT DOGBERT wrote on Tue, 8/29/2006 - 2:59 pm

Shoot!!! Guess that rental of mine is going to stay a rental for a bunch more years. Darn!

David Sternfeld wrote on Tue, 8/29/2006 - 3:45 pm

I'm still waiting for the WSJ or CNBC to declare, "No one wants to catch a falling knife as it slashes prices on the way down. If the past is recalled, most will be reluctant to pick it up off of the floor long after it lays there."

Gore wrote on Tue, 8/29/2006 - 4:14 pm

"So I guess we already knew everything in this "study"."

Bingo.

sharkbait wrote on Wed, 8/30/2006 - 4:28 am

Sure inventory is high but now it stands at about 7 months of supply. In 1990/91 it stood at more than 10. So we have can still expect inventory increase.

edhopper wrote on Wed, 8/30/2006 - 6:19 am

Remember that those inventory numbers are based on a sales to supply ratio. So a further decline in slaes would also lead to more months of inventory.

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