Housing Collapse: A Global Domino Effect?
The United States’ residential housing market collapse is shaping up to be an international trendsetter, according to article in today’s Times. The mortgage meltdown that’s caused our bubble to burst is spreading to other countries that’ve seen rapid housing appreciation in the last decade or so, like Ireland, Spain, England, and Eastern European capitals. The…
The United States’ residential housing market collapse is shaping up to be an international trendsetter, according to article in today’s Times. The mortgage meltdown that’s caused our bubble to burst is spreading to other countries that’ve seen rapid housing appreciation in the last decade or so, like Ireland, Spain, England, and Eastern European capitals. The article notes that the “synchronized global slowdown, which has become increasingly stark in recent months, is hobbling economic growth worldwide, affecting not just homes but jobs as well.” Beyond Europe, prices are also going down in India and southern China. The worldwide troubles are largely being blamed on too-lax lending standards and over-valuation of properties. The situation threatens to sink vibrant economies in countries like Ireland and Spain, where residential investment has played an outsized role in bolstering growth. As new construction slows, unemployment is rising, and houses are sitting empty.
Housing Woes in U.S. Spread Around Globe [NY Times]
Photo by JohnLeGear.
Because you are the first person to point out that the sky is falling, 10:58.
Even when it’s not.
Now get your rent in. It’s 14 days OVERDUE!
10:52 – god forbid their be a whisper of a suggestion that Park Slope may be doing slightly worse than other neighbhorhoods – glad you clarified IMMEDIATELY! It’s JUST a condo issue.
“Overall sales in upper echelon neighborhoods like Park Slope and Brooklyn Heights remained strong in the first quarter of 2008, the report shows. Prices rose for Park Slope single- and multi-family homes, as well as for co-ops, but Park Slope condo prices fell 32 percent, dragging down the neighborhood average home price.”
That should be *BY the agencies…
The “worldwide troubles” are being blamed on too-lax lending standards, of course, but never the system of banking safety nets run by the government that mitigates the risk of such standards biting banks in the ass. And also, never, ever, is the government blamed for its role in artificially cheap and easy money. Instead, the drums are beaten for MORE “oversight” but the agencies and entities that are the root of the problem.
Meanwhile, I fail to see the bad, macro-wise, in flagging home prices. All this means is that more people can afford a home. Benefits shift from those who bought high to those who can now buy low. The economy doesn’t care.
“Brooklyn Home Sale Prices Inch up 3 Percent in the First Quarter of 2008, New Study Finds”
http://www.marketwire.com/mw/release.do?id=843390
“Average home prices rose in Williamsburg, Brooklyn Heights, Carroll Gardens, Fort Greene and Bay Ridge but fell in Park Slope, Boerum Hill, Greenpoint and Clinton Hill.”
The only problem with the alternative energy market is it is an alternative to a major sector of our economy. The only way to make it a net positive for our economy is to be on the leading edge of the innovation, technology, and distribution of it.
If we aren’t on that leading edge the best thing it can do for our economy is improve our trade deficits and reduce our environmental clean up costs.
Did you know that if we changed every standard light bulb in America with a compact flourescent that the total reduction in green house gas would be wiped out by adding three coal burning power plants?
The strong european market is what has been propping up manhattan prices – since manhattan prices seemed cheap by comparison. once european prices come down, so will prices in manhattan. then you can forget about brooklyn.
” I don’t see anything on the horizon accept the slim possibility of the alternative energy business that will replace the credit/housing bubble.”
Absolutely, 10:13. They were talking about this on the news last night. I think it’ll be the next Dot Com boom/bust.