Housing not facing bust, just normalcy: experts
By Patrick Rucker
Reuters
Wednesday, September 13, 2006; 2:57 PM
WASHINGTON (Reuters) - While the U.S. housing market is drifting down from stratospheric levels, the sector is just returning to normal and is not poised to crash, several economists and industry leaders told lawmakers on Wednesday.
"True housing busts are a relatively rare event," Federal Deposit Insurance Corp chief economist Richard Brown said at a congressional hearing on the housing market.
In a recent study of past housing trends, the bank regulator concluded sharp drops in housing markets are most often linked to "episodes of severe local economic distress."
The rest of the article
You may find this article interesting. It looks like the Sarasota real estate market is heading towards a more normal market. However, we are not there yet. It is possible we will see more price drops. If you want that 2nd home for this winter or need a place to live then don't try to time the market by trying to pick a bottom.
Reuters
Wednesday, September 13, 2006; 2:57 PM
WASHINGTON (Reuters) - While the U.S. housing market is drifting down from stratospheric levels, the sector is just returning to normal and is not poised to crash, several economists and industry leaders told lawmakers on Wednesday.
"True housing busts are a relatively rare event," Federal Deposit Insurance Corp chief economist Richard Brown said at a congressional hearing on the housing market.
In a recent study of past housing trends, the bank regulator concluded sharp drops in housing markets are most often linked to "episodes of severe local economic distress."
The rest of the article
You may find this article interesting. It looks like the Sarasota real estate market is heading towards a more normal market. However, we are not there yet. It is possible we will see more price drops. If you want that 2nd home for this winter or need a place to live then don't try to time the market by trying to pick a bottom.
posted by Marc Rasmussen at
7:20 PM
1 Comments:
This from the International Monetary Fund; selected excerpts below.
IMF: Housing Market Could Slow U.S. GDP
Thursday September 14, 9:49 am ET
By Gillian Wong, Associated Press Writer
IMF: Housing Market Could Slow U.S. Economy, but Growth in China Could Boost Global Growth
SINGAPORE (AP) -- The U.S. economy is headed for a slowdown caused by a cooling housing market, the International Monetary Fund warned Thursday, and that could drag on global growth.
The IMF revised downward its forecast for U.S. economic growth to 2.9 percent for 2007 from an estimate of 3.3 percent in April.
Still, the IMF warned that inflationary pressures, high oil prices and a possible abrupt slowdown in the U.S. economy could restrain global growth.
"The forecasted (U.S.) housing slowdown is well and truly here," he said. "Indeed, rising inventories of unsold houses suggest things will get worse before they get better."
Last month, the Commerce Department reported that sales of new homes dropped 4.3 percent while the inventory of unsold homes climbed to a record high.
The IMF also said further U.S. interest rate hikes might be necessary as inflation remains a threat.
The Federal Reserve "faces a difficult situation of rising inflation in a slowing economy, but given the importance of keeping inflation expectations in check, some further policy tightening may still be needed," the report said.
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