Housing Recovery in U.S. Set Back to 2010 With Market on `Life Support'

[marmar]

U.S. Housing Recovery Delayed to 2010 as Market Wanes (Update1)
By Kathleen M. Howley and John Gittelsohn


Nov. 20 (Bloomberg) -- A recovery in U.S. housing will have to wait at least until next year.

The outlook for the home market dimmed this week as residential construction and mortgage applications fell and loan delinquencies reached a record.

“I don’t think the housing crisis is over,” Mark Zandi, chief economist with Moody’s Economy.com, said in a telephone interview. “I think we’re going to see another leg down.”

New home sales may begin to pick up by the start of the so-called spring selling season, said Toll Brothers Inc., the largest U.S. luxury homebuilder. Existing house sales may take longer. Residential construction and property sales led the way out of the previous seven recessions going back to 1960, said David Berson, chief economist of PMI Group, the mortgage insurer in Walnut Creek, California.

Mortgage applications for home purchases fell to a 12-year low last week and foreclosures rose to record highs in the third quarter, according to reports from the Mortgage Bankers Association.

An index measuring November homebuilder confidence came in lower than the median forecast of 45 economists this week. The Commerce Department on Nov. 18 said residential building dropped 11 percent in October to the lowest level since April’s all-time bottom. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aUSh9f1ytDTY&pos=2

[AllentownJake]

1. Treasuries are trading at a negative yield

There is no faith in the financial system right now. Investors are willing to take a negative yield vs. commercial paper or cash balances at the banks. People with money still view the counter-party risk as high.

TARP was a failure, a year later, people are still concerned with the health of the financial system.

[Craftsman]

3. I agree with you.

I am putting my money in silver. That and food.

[AllentownJake]

4. Unless you have over 250,000

You can keep your cash in a bank. The FDIC will pay you your dollars.

[Craftsman]

5. I do not trust the dollar anymore

[AllentownJake]

7. Well the people with the big bucks are betting on the continued existence of the US government

So I think it is safe right now.

[Craftsman]

9. For now yes, but

will the union hold? If things go as bad as they possibly can the US might breakup. A Russian professor wrote a paper on it las year I just can't remember his name. I hope not but I am putting money in silver as a store of wealth and because silver is onthe rise.

[AllentownJake]

12. If you are that concerned take physical hold of it

No sense buying silver stocks if you believe there is a collapse.

Everyone should have a store of 1 month of can goods regardless in the case of a national emergency. I have one.

[Craftsman]

14. I am working up to 3 months of food.

Both for emergencies and as a hedge against inflation I see next year.

[Winterblues]

10. The dollar has declined in value for eight straight years now.

If you had used your dollars eight years ago to buy gold you would be happier than if you just kept that money in the insured bank/

[Craftsman]

13. I know

[AllentownJake]

15. It has actually declined in value for 96 years now

http://www.measuringworth.com/uscompare/

[Craftsman]

6. I have been watching this since 2005 and my worst case is:

Mad Max without the benefit of petrol.

[AllentownJake]

8. Well there are enough guns in this country

If the government ever fell, we'd be Afghanistan pretty quickly.

[Craftsman]

11. I know I live in TX

The new state motto: If You Ain't Packin' Your Slackin'

[Mari333]

2. no jobs, no money being spent.

who can buy anything now?
jobs are in India and China and Mexico and Bangladesh and ....

[Rockholm]

16. Real Estate Market is busy in Mass.

Sorry it sucks in FL, AZ, NV, CA.

[AllentownJake]

17. PA isn't doing well

but we don't have sunbelt or western state problems. There is a plus to your state being part of the original union....you have less areas to build, thus less areas to inflate a housing bubble.

[Craftsman]

18. My MIL is in Methuen

She is looking into selling her home 2 years ago she was told by a realtor she could get $275K now the same one will list it for $199K. That is why it is booming.

[Rockholm]

20. I wouldn't say booming.

It is busy. The under $300K market is steady and the 1M+ is OK. If a home is priced right, it will sell. There are many examples like the one you posted.

[jpak]

19. This is why the extension of the home buyers credit was essential to the economic recovery

When it looked like it would not be extended - home building tanked.