Looking for the Bottom
Ever since the real estate bubble burst and market indicators across the board started plummeting, everyone has wanted to know when the market was going to reach bottom. Well, maybe we’re there, nationally speaking. Dean Baker, of the Center for Economic and Policy Research, thinks so; he told AP via Fox News that “the freefall…
Ever since the real estate bubble burst and market indicators across the board started plummeting, everyone has wanted to know when the market was going to reach bottom. Well, maybe we’re there, nationally speaking. Dean Baker, of the Center for Economic and Policy Research, thinks so; he told AP via Fox News that “the freefall is over.” AP cited several nationwide statistics from the past two weeks: “home resales in June are up 9 percent from January, on a seasonally adjusted basis; sales of new homes have climbed 17 percent during the same period; and construction, while still anemic, has risen almost 20 percent since the beginning of the year.” In the Northeast, “home resales in June hit a seasonally adjusted pace of 820,000, up 28 percent from the beginning of the year. Sales of new homes were also up slightly and construction in the region more than doubled.” It is the amateur statistician, however, that reads too deeply in short-term statistics. The improvements in the market, so far, can only provide hope that the worst is behind us, but economists warn that even if this is the bottom of the barrel, we may stay down there for a while longer.
Welcome to the Bottom [Fox News]
Photo by AvarieRiot
Rates will rise. To say “sometime in ’11” though is really not a valid prediction. It’s too far out and lots can change between now and then. If you just consider the price of oil, it’ll be +60-80% YOY at these prices in December and that won’t be good.
The FED is going to keep short rates very low for another 2 years.
This is why the banks that will survive, BAC, JPM, C are such strong buys here.
“What is your prediction for rates What”
The US Government borrowing cost will rise sometime in ’11. Two things must happen- Cut back on programs or pay higher interest rates. I think as money gets scarce rates will rise.
Higher rates=Low Housing prices.
The What
Someday this war is gonna end…
What is your prediction for rates What? And, more importantly what is the timeframe??
If you don’t answer I’m going to assume you’re busy putting together your dance video to “I’m a Barbie Girl.”
“Maybe they are still trying to understand what a second derivative is.”
What will happen to interest rates? That’s your “Second Derivative”!
“Where are BHO, cornerbodega & Miss Muffett to refute this evidence??????”
Like the Forte Condo??????
Whatever..
The What (Yawn)
Someday this war is gonna end…
> refute this evidence??????
Refutation begins when actual evidence is presented. Nothing to see here, folks, move along.
Where are BHO, cornerbodega & Miss Muffett to refute this evidence?????? Maybe they are still trying to understand what a second derivative is.
DIBS, where in Staten Island can some one afford to buy something with out making some big bucks (ie 100k+)?
“Many cops, firemen, and teachers make in excess of $100,000”
I don’t know many NYC teachers in this category, except those at the very end of their careers.
“Personally know several teachers who own homes in Park Slope”
Bupe, so do I. They fall into two categories: those who bought a looooooong time ago, and those who were born wealthy or married into wealth.
shoot, I bet you some people own residence in west village or near central park and not make big bucks but that doesn’t mean those areas are affordable for the regular Joe looking to buy something. Rather it means, those particular folks in those prime areas were lucky or smart enough to buy their residence when prices were not Massive.