More Proof the Housing Boom Is Over
The Office of Federal Housing Enterprise Oversight released data earlier this week showing that U.S. home prices experienced their biggest deceleration in growth in three decades in the second quarter–but nevertheless ticked upward. Average home prices rose 1.17 percent in the April to June period, versus 3.65 percent in the same period a year earlier….
The Office of Federal Housing Enterprise Oversight released data earlier this week showing that U.S. home prices experienced their biggest deceleration in growth in three decades in the second quarter–but nevertheless ticked upward. Average home prices rose 1.17 percent in the April to June period, versus 3.65 percent in the same period a year earlier. “These data are a strong indication that the housing market is cooling in a very significant way,” OFHEO Director James B. Lockhart said in a statement. “Indeed, the deceleration appears in almost every region of the country.”
Home Prices Rising After 2Q Slowdown [Forbes]
I’m guessing 1:01 is in a small, over-priced rental unit…
Same as I have been saying since summer 2005:
Spring 2005 was the peak, we will see transaction prices decline for 3 years to about early 2004 levels, bottom out in in 2008 or 2009, reach spring 2005 levels in another 3 years and then take off just like prior cycles.
I will be buying again in 2008 and 2009
Post 28 here
http://www.curbed.com/archives/2006/09/05/curbed_roundtable_september_state_o_the_market_report.php
Post 29 here:
http://www.curbed.com/archives/2005/12/01/curbed_roundtable_december_stateothe_marketreport.php
Calling the top here:
forums.newyork.craigslist.org/?ID=31594625
can u spell RECESSION ?
jd, it depends on the neighborhood and the type of property (e.g., condo/coop, studio, one bedroom, etc).
01:01 PM, greed and consumption is nothing new to America. It didn’t start in 2001. This type of stuff goes back for millenia. Those who have money will always try to outbid those who don’t…simple supply and demand.
If it doesn’t happen in the sales market, it will happen in the rental market. I guess it’s basic human nature/insecurity to say that you’re living better than someone else or that you possess something that someone else wants. And no one has a problem with it until they find themselves on the side of the dispossessed.
Very true Boston is getting killed .
Housing has appreciated at the rate of Inflation or less since the world war 2 . Why would anyone think it would keep going up at this point needs to see a financial advisor. Get real Brownstone or not , Boston is loaded with Brownstones and the market up there is terrible. Brownstones are beautiful but so are single family homes on Todt Hill, they will both lose value. Good luck
Where on earth do you people whose prices have tripled live? I bought a brownstone in 2001 and the value has just doubled. There was an aprox 30% increase in 2004-2005, not a doubling. Granted, I’m not in the hotest hood, but still…
This may disturb some of you. This may surprise some of you. This may disappoint some of you. But it has to be said.
After denying it for sometime, and even to myself, the truth is now clear.
I am rooting for an epic housing collapse, a disastrous recession, the collapse of the stock market, a complete replacement of our current partisian leadership, a questioning of our country’s current economic model, and a severe and historic financial meltdown.
Period.
Before, I thought just a correction would do the trick. A cleansing of the debt-and-greed-fueled housing balloon we as a society created.
But I’ve come to the conclusion that will not be enough to right the wrongs and fix the problem, so that future generations will not be burdened with the current generation’s misguided and self-centered ways.
Pure and simple, I want Change (with a Capital C), and I now feel that only an historic financial meltdown will create the environment where Americans wake up from their current slumber, and call for new leadership, new thinking, and above all, change.
Something went awry in the US over the past decade. Something changed, with our government, our system, and our collective conscious. And this change was not for the better.
Greed overcame and infected so many of us – the idea of getting rich without working, and an overwhelming need to consume, consume, consume. We no longer worked for the benefit of our common man – we worked only for ourselves. We said “screw the next generation – I want mine, and I want it now!”. And we went on a debt-fueled orgy of spending, never stopping to look at the bills coming due, and never stopping to think about the repercussions.
Now, dear reader, it’s time to stop. It’s time to pause, and consider where we went wrong, and above all, how we can fix it.
So, in conclusion, the fate that awaits us, this cleansing of our ways and of our system, in the form of an epic real estate market and financial collapse, in my simple opinion is a fate of necessity, and will serve as a catalyst for needed Change.
And away we go. Good luck to all of you, and know that I believe that we will come out of this stronger, wiser and determined to Change.
the housing market is still a mainstay of the U.S. economy. Many people believe that housing is still propping up the economy. A hard crash at this point, 07′ could have dire implications for the economy overall, as in a major recession/depression. No one wants to examine this aspect of a severe crash.
So while you might perceive a crash as being beneficial, the flip side is that layoffs might increase dramatically and you might find yourself out of a job and unable to cover any mortgage, let alone the rent.