The Case For Recovery
We Have One, But It Wont Feel Like it
Case-Shiller released their index of home prices in 20 cities and it rose 0.6 percent in February over last year. Existing home prices advanced 0.4%, as sales climbed for the first time in four months.
We’ve turned a corner with housing," said economist Karl Case, who with Robert Shiller created the index. "As long as mortgage rates don’t jump and employment continues to improve, we should see housing play a key role in preventing a double-dip recession. Via Seeking Alpha
Monetary Policy; The Fed kept monetary placed a hold stating that conditions requiring low rates were likely to remain for an extended period.
Inflation: The economy is in a sweet spot with solid growth and inflation is low. Why the Fed is keeping rates low, to put behind us several quarters of growth and stimulate job growth and consumer confidence.
Counter Trends
Jobs: The economy will still have to expand at a decent rate for several more quarters before we get decent job growth
Defaults: 13.6 million homeowners have no equity or negative equity and therefore have little incentive to continue to pay high monthly mortgage debt.
Steep Losses It will take quite a while to dig out. Note: The chart above compares this very steep decline with the last bust in the 1990's. See chart courtesy of papereconomy.com
REsourced from www.yourpropertypath.comYou may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com
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Home Trends Price Stability
Housings Weak Recovery: Lets Follow The Money
Case-Shiller released their index of home prices in 20 cities and it rose 0.6 percent in February over last year. Existing home prices advanced 0.4%, as sales climbed for the first time in four months.
We’ve turned a corner with housing," said economist Karl Case, who with Robert Shiller created the index. "As long as mortgage rates don’t jump and employment continues to improve, we should see housing play a key role in preventing a double-dip recession. Via Seeking Alpha
Monetary Policy; The Fed kept monetary placed a hold stating that conditions requiring low rates were likely to remain for an extended period.
Inflation: The economy is in a sweet spot with solid growth and inflation is low. Why the Fed is keeping rates low, to put behind us several quarters of growth and stimulate job growth and consumer confidence.
Counter Trends
Jobs: The economy will still have to expand at a decent rate for several more quarters before we get decent job growth
Defaults: 13.6 million homeowners have no equity or negative equity and therefore have little incentive to continue to pay high monthly mortgage debt.
Steep Losses It will take quite a while to dig out. Note: The chart above compares this very steep decline with the last bust in the 1990's. See chart courtesy of papereconomy.com
REsourced from www.yourpropertypath.comYou may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com
Related Articles
Home Trends Price Stability
Housings Weak Recovery: Lets Follow The Money
Comments (3)
No Chance, Inventory is to high and under reported, demand was pulled forward by tax credit. I suspect we will see more inventory, less buyers and that means lower prices. But I can see a light at the end of the tunnel in 12-15 months as long as we keep building new homes next to nothing
Michael Zuber, about 14 years ago
The tax credit is over with as of this morning. We are going to have a drop in home prices for a short period of time to make up the difference in my opinion. People buying houses will still think about that 8,000 for a few months
Howard Stokes, about 14 years ago
Tough call. I am not sure about turning the corner with just a minor increase in existing home sale prices. We still have increasing foreclosure numbers and employment will be necessary to truely turn the corner.
Ted Akers, about 14 years ago