6 replies to this topic

[jawndissedi]

"Slumping sales and drooping prices haven't diminished homeowner optimism about their own nest egg's value, a recent survey shows.

The survey by Boston Consulting Group showed that 55% of Americans believed they could sell their house for more now than a year ago, down slightly from the 59% who felt that way last summer.

Nearly three-quarters think they could sell their homes within the next six months at a price they set, and 63% believe that real estate is a good or excellent investment.

The positive sentiment comes in spite of housing data that show a downturn in real estate."

LATimes: Full story

Meanwhile, back at the bank:

"Losses in the U.S. mortgage market may be the ``tip of the iceberg'' as borrowers fail to keep up with rising payments on billions worth of adjustable-rate loans in coming months, Bank of America Corp. analysts said."

Bloomberg: Full story

Good thing none of this has anything to do with the stock market.

[Jinsong Liu]

"55% of Americans believed they could sell their house for more now than a year ago" is the reason why people keep spending money (retails up) with sky rocked gas price.

[fib_1618]

Good thing none of this has anything to do with the stock market.

Interestingly enough, both you and I can agree on this last statement.

Fib

[pdx5]

If housing keeps up (down?) with this trend, it will certainly affect consumer confidence. Average home owner stays in a home for 7 years. So, in the next year or so there will be millions of house owners waking up to the rude reality that their house won't sell at the price they thought was coming. All this won't happen overnight because of the obvious fact that home owners can sit it out for a few months. It's not like a stock which is dropping and you can liquidate it quickly. There is a small possibility that housing may be near a bottom already, although odds are it is not. There are millions of ARM's still coming due for a rude increase. If housing goes deeper in doo-doo, you can bet it will affect everything including stocks. Could take a lag of 1 or 2 quarters for stocks to implode after housing bottom. JMOFWIW.

[Rogerdodger]

A friend of ours put her house on the market and it sold within DAYS!
Today, a client of mine told me that her "investment" house has been on the market for months, still unsold.
Tulsa's last Sheriff's sale has dropped from 55 houses last week down to 35 this week.

Edited by Rogerdodger, 23 June 2007 - 11:07 AM.

[OEXCHAOS]

Good thing none of this has anything to do with the stock market.

Interestingly enough, both you and I can agree on this last statement.

Fib

Fib,

You're both wrong. The worse the news on real estate gets, the better it will be for the stock market, longer term.

As I said correctly last summer the badnews is what we need to make the Fed back off. Further, unattractive real estate frees up cash for the stock market.

Mark

[jawndissedi]

Bad news in one context is invariably good news in another. Here's an example:

Bottom feeders

Edited by jawndissedi, 23 June 2007 - 08:30 PM.