RedCedar
Jul 28 2006, 03:41 AM
QUOTE
New home sales fall more than expected
Prices flattening as inventory rises to a record
http://www.msnbc.msn.com/id/14059172/Is this something to really fear?
Will the landing be soft or hard? Or are you optimistic about the housing situation staying the same?
Along with gas prices possibly going near $4/gallon and housing values dropping, how bad could this hurt the economy....along with already a slow down in growth?
Eeyore
Jul 28 2006, 03:56 AM
Is this something to really fear?
Yes it is to fear if the landing will be hard as in a bubble. But I don't think the housing market will crash. In hot areas of the last five years I predict ten years of less than interest rate growth.
Will the landing be soft or hard? Or are you optimistic about the housing situation staying the same?
This is a regional issue. I think areas that have soared will be flat for a while, but places that didn't jump up like Tennessee and Austin, Texas could get an influx of high real estate price refugees to cash their equity in. Then these areas will flatten out.
Along with gas prices possibly going near $4/gallon and housing values dropping, how bad could this hurt the economy....along with already a slow down in growth?
I'll be bullish here. I think a return to normal growth in real estate will push more money back into the stock market, which has been flat for 5 years and get my 401k finally working for me.