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unlawflcombatnt Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 04:37 PM
Original message
Housing Bubble RAPIDLY Deflating
The Housing Bubble deflation is rapidly accelerating. November New Home sales declined 11.3% from October. This is the largest decline in New Home sales in 12 years. In the West, the bubble is deflating even faster. November New Home sales in the West declined 22% over October.

Median New Home prices also declined 4.1%. November's median New Home price declined to $225,200 from October's $234,800. This information can be found in the following article by AP writer Martin Crutsinger: NewHomeSalesFall

Below is a chart from Briefing.com showing the changes over the last 5 months.


This can be found at: NewHomeSales

unlawflcombatnt
EconomicPopulistCommentary
_________________
The economy needs balance between the "means of production" & "means of consumption."
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evlbstrd Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 04:39 PM
Response to Original message
1. What about existing home sales?
You know, houses built a hundred years ago, when they really built them.
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Atman Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 04:39 PM
Response to Original message
2. The govt. will hold off announcing how bad it is until after Xmas
Encourage Americans to get deeper into debt before the big bursto. It is more important to BushCo to have short-term press-release material over long-term economic responsibility.
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acmejack Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 04:43 PM
Response to Reply #2
3. This will get nasty.
Folks will have to pay out of their meager salaries to their creditors, regardless of what they must go without. All the compassion they can stand.

The "non-traditional" financing methods are going to bite many in the ass.
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Bush_Eats_Beef Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 04:52 PM
Response to Original message
4. When the Silicon Valley median price drops from $750K...
...I'll feel like we've made some progress.

That's $750K for the average small 2 bedroom single family home, NOT a mansion.
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madrchsod Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 04:57 PM
Response to Reply #4
6. that house would be right around
50-60 thousand where i`m at...of course ronny`s hometown isn`t as glamorous as san francisco
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madrchsod Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 04:54 PM
Response to Original message
5. here in western northern illinois
the prices for "used" houses are dropping. this is not a good sign at all.
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depakid Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 05:04 PM
Response to Original message
7. Wait 'til mortgage rates really start to rise
Which they inevitable will, given America's immense and growing twin deficits.

You're going to find a lot of people upside down- just as they were in the late 80's.

and bankruptcy ain't gonna save their disposable income this time around.
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Lars39 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 07:16 PM
Response to Reply #7
13. This is why we surrendered our house.
It needed time-consuming work to finish it out, and we felt that it was too risky to try to break even on the house, let alone make a profit. Hardest thing to do, but we still feel we made the right decision.
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ClintonTyree Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 05:17 PM
Response to Original message
8. So all of those idiots who bought the "McMansions"........
at such inflated prices are going to be sucking wind. Add to that their variable interest rate mortgages skyrocketing and you've got a recipe for disaster. The only thing keeping this anemic economy's head above water was the housing market and it's ancillary businesses.
An there's still 3 more years in the giggling murder monkey's administration? The old "Hoovervilles" will now be renamed "bushvilles" and I sure hope all of those "faith based" charities are ready for the enormous influx of Americans requiring their services. All served with a side order of Jesus, of course! :eyes:
The second great Depression, here it comes!
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PurityOfEssence Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Dec-24-05 01:33 PM
Response to Reply #8
17. "murder monkey"; I like that
It's got a ring to it...

Jesus will be the main course, though.
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FloridaPat Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 05:44 PM
Response to Original message
9. Most of the US population was looking at a very expensive winter.
WIth heating bills up 50-75% over last year, I would imagine the idea of buying a new house and moving and paying all those bills plus heating bills would panic the average person. Plus Michigan should be pretty much dead now with 30,000 from GM loosing their jobs and FOrd said they might lay off 30,000 also.
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cmd Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-05 05:58 PM
Response to Original message
10. Foreclosures have been soaring in our area
I'm sure we'll be seeing many more as heating bills come in and the ARM's begin rising. Wages for the common man are stagnant. Lay offs regularly occur. It's going to hit hard.
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Heewack Donating Member (297 posts) Send PM | Profile | Ignore Fri Dec-23-05 06:29 PM
Response to Original message
11. Not much can be made of these statistics.
Especially given the time of year. The median on such a short term is rather meaningless.
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Zynx Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Dec-24-05 10:00 AM
Response to Reply #11
16. There is a definite trend though over the past six months.
These numbers ARE seasonally adjusted.
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PsycheCC Donating Member (482 posts) Send PM | Profile | Ignore Fri Dec-23-05 06:56 PM
Response to Original message
12. It's About Time!
This bubble has been getting ready to deflate for a long while. It will be interesting to see how far the government and lenders will go to try to keep over-extended borrowers from defaulting and creating a glut of foreclosures.

Thanks for keeping track of the numbers!
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unlawflcombatnt Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Dec-24-05 06:52 AM
Response to Original message
14. Sacramento
I found an article from another blog site stating that Sacramento home prices had declined 40% in the last 3 months. That article can be found at: http://jeffmatthewsisnotmakingthisup.blogspot.com/2005/11/tomorrows-headline-today.html

Another great site with information about the housing bubble decline is: http://patrick.net/housing/crash.html#links
Though this site centers on the San Francisco Bay area, it also has good information on the nation as a whole.
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unlawflcombatnt Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Dec-24-05 03:51 PM
Response to Reply #14
19. Correction RE: Sacramento
I made a mistake in my previous post titled "Sacramento." Instead of "prices" dropping 40% I should have stated "sales" declined 40%.

So it should have read "Sacramento home sales declined 40% in the last 3 months."
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TheWatcher Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Dec-24-05 08:27 AM
Response to Original message
15. SO Good to hear from you unlawflcombatnt
I was hoping you would weigh in on this. So many people do not see or even want to see what is coming.

Thank You as always for your invaluable, informative, and very anylalitical Posts.
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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Dec-24-05 01:46 PM
Response to Original message
18. You'd think the president, et al, would prevent THIS bubble from bursting.
It's the only way to save the economy; even the wealthy won't last long before they cry "uncle" too.
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