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]
All indicators point to a downward turn in the real estate market. Who will be affected will be determined on a case by case basis. Not everyone who bought in the last 3 years is going to face financial hardship, some bought using fixed mortgages and some bought with a financially responsible outlook. A downward turn in the market does not mean owners are going to be hurt, some might have to accept less of a profit, and others might wait it out. It is unfair and incorrect to state a downward turn in the marker will hurt all. No one is suggesting that the market is going to crash and never return to the current levels. All that is occurring is a correction, which might decrease the profits on housing, but not necessarily result in a loss for all home owners.
I bought my house in ’05, and am finishing up a renovation.
I’m happy.
This debate has been sheer genius!
I think rates are down is what he said, wasn’t it?
I find it amusing how some people state as fact… price went up 50% in year or double or whatever.
i, for one, am hoping for a real estate crash and not ashamed of it. 🙂 i don’t wish financial ruin on anyone who’s had to pay top dollar for a home recently (and it sounds like the ones who are really going to lose out are the speculators, not the home owners), but i think it’s ridiculous that hardworking families like my own aren’t able to afford a place to live. i’m not looking to buy a brownstone or a townhome, just something with two bedrooms in a semi-decent neighborhood. and i’m sick of hearing brokers tell me that that’s some kind of pipe dream, or that i should up my price range. as if it’s my fault that i don’t make enough money, and if i could just get over myself and start making more money, they could start taking me seriously.
i’m hoping for a real estate crash so that every broker who quit their burger-flipping job to get rich quick will go back to burger-flipping with their tail between their legs and so hardworking families can stop being bullied around by snotty brokers who insist that if they just sucked it up, put up their firstborn child as collateral for a mortgage and moved to mill basin, they just might be able to get a membership in the exclusive club of brooklyn homeowners.
not that there’s anything wrong with mill basin, i hear it’s lovely there this time of year.
“By the way, interest rates are on their way down again.”
Maybe YOU should stop posting anonymously if you want others to take your advice. And interest rates have been down all summer – they haven’t really risen significantly in months. Hasn’t helped the market much.
you seers who are so ‘educated’ about the market and able to predict the impending, disastrous crash in 07 should stand behind your words and stop posting anonymously. This way, we will all know that you’re full of sh_t, and you will have lost all credibility on this blog when the big crash that you’re predicting doesn’t occur.
If I had a dime for every ‘analyst’ who told me that there would be a lot of foreclosures in 2002 I would be a very rich man today.
By the way, interest rates are on their way down again.
Anon 11:43, i think you’re the retard. So what if I forgot to add 100% reduction of ‘original purchase price’. I think the rest of readers got my gist. Plus, I mentioned that prices doubled between 04-05. I bought in 05 (after prices doubled), but I’m still looking at a 90% reduction before I lose all my equity. Anon 11:43 you really need to take classes in reading and arithmetic.
People, don’t be terrorized into selling your homes. You’re sitting on a bonafide gold mine.
Ok whatever enough with the spelling. Just face the facts that’s all anyone is suggesting. Keep your house and live like a Hermit crab. But the real drop will come in 07 then you will feel the wrath of a down housing market. All of the phony real estate agents will get a reality check.