HOUSING: WHERE IS THE BOTTOM?


It is generally agreed that housing is a significant contributor to the current economic crisis. Many have said that the credit bubble can not be deflated and the consumer can not return to spending until housing prices stabilize. Others have said that recovery will not be sustainable until the housing market bottoms. I have heard so many people offer opinions (watch CNBC) that the housing market will bottom in 2009 or 2010. A few have offered an opinion of a longer wait. I have not seen a comprehensive discussion of the factors involved in the housing shake-out, so here goes. I hope it’s not a case of “fools rush in where wise men fear to tread.”

There are three aspects of the housing crisis: Falling prices, mortgage defaults and supply issues. They will be tackled one at a time, although they are related. Falling prices increase mortgage defaults, which throw foreclosed houses onto the market, and thus the inventory glut is increased. Additionally, there is a section analyzing the demographics involved in the current housing cycle, which are different from the previous cycles since 1950.  To continue, click on the following link:     http://seekingalpha.com/article/113843-housing-where-is-the-bottom?

Advertisements

One Response to “HOUSING: WHERE IS THE BOTTOM?”

  1. Mike Says:

    Just passing by.Btw, you website have great content!

    _________________________________
    Making Money $150 An Hour

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: