MoneyNews says the worst is over in real estate!
Though it never got that bad here, Alan Greenspan reported yesterday in MoneyNews that housing woes are probably behind us. In the same issue was a report that home prices have plunged almost 10%, the most it 35 years! Fortunately, San Francisco seemed to be insulated from this drop. Though we have admittedly noticed a slowdown, prices seem to have held relatively well. Here are the articles:- Mick Orton
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Home Prices Plunge by Most in 35 Years
The median price of a new home plunged 9.7 percent in September from a year ago, the largest drop in more than 35 years, reports the Commerce Department.
The median home price dropped to $217,000 in September from $239,300 in August. That was the lowest median price since September 2004. The 9.7 percent plunge was the sharpest year-over-year decline since December 1970.
The plunge in new home prices follows a record plunge in existing home prices. As MoneyNews told readers yesterday, the 2.5 percent year-over-year decline in existing home prices was the biggest in the National Association of Realtor’s nearly 40-year record.
Clearly home prices across the board are in the midst of a serious correction, one which our sister publication, Financial Intelligence Report, told readers about months ago. Both Sir John Templeton and Yale Professor and real estate expert Robert Shiller told FIR readers that they expected the housing market correction to result in prices plunging up to 40 percent. And, unfortunately, it looks like their predictions will be spot on. Read more.
- NewsMax
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Greenspan Says Housing Woes ‘Probably Behind Us’
Former Federal Reserve Chairman Alan Greenspan, the chief architect of the housing bubble, said Thursday that the housing market isn’t in dire straits.
"Most of the negatives in housing are probably behind us," Greenspan told a conference sponsored by the Commercial Finance Association. "The fourth quarter should be reasonably good, certainly better than the third quarter."
Greenspan retired as Fed Chairman in February of this year. Greenspan slashed interest rates from 6 percent in January 2001 to 1 percent in June 2003 to avoid a recession following the bursting tech bubble. In that low interest rate environment, the housing sector surged.
"There are early signs of stabilization (in housing)," Greenspan tells his audience. But hedged his prediction by saying of the housing slump, "It’s not over." Read more.
- NewsMax
posted by SFResidence.com @ 8:21 AM
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