http://www.branchblog.com/archives/2007/05/26/are-housings-problems-being-underreported/ Real estate trends, community events and other stuff happening in Branchburg. Thu, 20 Nov 2008 08:16:10 +0000 http://wordpress.org/?v=2.0.5 http://www.branchblog.com/archives/2007/05/26/are-housings-problems-being-underreported/#comment-456 Sun, 27 May 2007 14:47:16 +0000 http://www.branchblog.com/archives/2007/05/26/are-housings-problems-being-underreported/#comment-456 I think your predictions are spot on. The numbers for new & resale housing are both overstated. And- no doubt- long maturity rates are headed up. I think your predictions are spot on. The numbers for new & resale housing are both overstated. And- no doubt- long maturity rates are headed up.

]]> http://www.branchblog.com/archives/2007/05/26/are-housings-problems-being-underreported/#comment-455 Sun, 27 May 2007 12:42:03 +0000 http://www.branchblog.com/archives/2007/05/26/are-housings-problems-being-underreported/#comment-455 I believe there is a lot of truth to the claim that the home sales slide was under reported. Note though that Realogy has been putting out their numbers for a while now and that NAR has also "adjusted" their numbers a few times. It is not an exact science as residenetial real estate is a "local business". Not all markets are doing poorly, like Seattle and Manhattan. I think what is really being overlooked is the ever so slow rising mortgage rates. With the ten year approaching 5%, that continued increase coupled with the tightening of lending practices coming on the heels of the sub prime "melt down", will put even more pressure on home prices and their sales. The statistic to watch is the inventory of homes for sale. If those numbers continue to rise with increasing interest rates, there will be significant downward pressure on prices, especially in those "local areas" where the economy is weak. I believe there is a lot of truth to the claim that the home sales slide was under reported. Note though that Realogy has been putting out their numbers for a while now and that NAR has also “adjusted” their numbers a few times. It is not an exact science as residenetial real estate is a “local business”. Not all markets are doing poorly, like Seattle and Manhattan. I think what is really being overlooked is the ever so slow rising mortgage rates. With the ten year approaching 5%, that continued increase coupled with the tightening of lending practices coming on the heels of the sub prime “melt down”, will put even more pressure on home prices and their sales. The statistic to watch is the inventory of homes for sale. If those numbers continue to rise with increasing interest rates, there will be significant downward pressure on prices, especially in those “local areas” where the economy is weak.

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