White House Sees Slow Fall for Home Sales

[sabra]

http://www.columbian.com/news/APStories/AP02132006news188457.cfm

White House Sees Slow Fall for Home Sales


WASHINGTON (AP) -- The high-flying housing market should make a safe landing by gradually losing altitude, the White House suggested Monday.

Housing has been an important source of power for the economy as home sales hit record highs in the past five years running. Low mortgage rates were a factor behind brisk housing activity.

"A gradual slowing of homebuilding appears more likely than a sharp drop because the elevated level of house prices will sustain homebuilding as a profitable enterprise for some time," according to President Bush's annual economic report to Congress.

The direction of the housing market is being closely watched. Most private analysts also are expecting gradual moderation. If the housing market were to collapse, it would pose grave dangers to the country's overall economic health.

[bliss_eternal]

1. It sounds like they are trying to convince

themselves. As stated in the last sentence, if it does collapse they will have a lot to answer for...

[Joe for Clark]

3. You got it.

You know, markets go up slowly - but they come down hard and fast.

These guys are shitting in their pants right now.

We WILL get congress back in a few months.

And they BETTER be scared. We remember what they did to Bill Clinton - and whats coming will make that so pale in comparision.

Yep - gonna be a great fall (literally and figuratively).

Joe

[acmejack]

2. Praying their collective asses off is more like it!

And well they should be. Read "Greenspan's Fraud" by Ravi Batra, he really lays this out well.

[Tempest]

4. Since when has this administration gotten anything right?

Expect the worse.

[MadMaddie]

5. If the White House Sees a Slow Fall for Home Sales...

That means the opposite....If we can look at the precedent of everything these nuts have said the opposite is always, always true.

The housing market is getting ready to tank!!


:nuke:

[0rganism]

6. "a safe landing by gradually losing altitude"

Yeah, just like those planes gradually lost altitude on 9/11, right shrubby? I guess the market for bullshit is still... well... bullish.

[Warpy]

7. There are at least 2 houses for sale on every block

on this barrier island on the east coast of Florida. They're just not selling right now, even though there are still a lot of people wandering around on vacation and looking for a place to retire.

I'd say the home sales have fallen off a cliff. The prices haven't plummeted--yet--but they will.

All it will take is that first Florida hurricane.

[progressivebydesign]

13. Our sales have picked right back up now..

the late fall and the holiday season was slow, but homes are going again, and there are not the price reductions we saw in deep december... people just don't buy houses in our region during the cold, wet, months. Not the same in Florida, of course. I think the incessant rate increases finally scared everyone off.. and of course the energy costs.. it's all perception when it comes to consumer confidence. Things will pick up... just gradually, which is fine.

[xxqqqzme]

8. even w/ all their tax breaks

exactly how many homes can a billionaire own? before it gets really repetitious and not fun anymore...4?....5?

Home foreclosures are up 20% in southern California for the last quarter of '05.

[bliss_eternal]

9. In my part of southern California

homes with for sale signs are just sitting. The frenzy of several interested buyers for every home has died. I've even noticed quite a few of the 'for sale' signs have changed to 'for rent.'

The banks are the ones that get rich on foreclosures, and some realtors that focus on that sector.

[bunny planet]

10. yeah, and I always believe what the WH suggests.

[Auntie Bush]

11. Bush thinks the economy is doing OK because of his tax cuts.

But it's totally because of the low interest rates thus great housing sales. But, now everyone is broke and in total debt trying to fill those homes with goodies and many have lost their jobs. Doesn't look like a very bright future! If we weren't busy developing our Military Industrial Complex this economy would be in the toilet. That's why we have to go after Iran. Gotta keep this war going. Can't stop being Commander-in-Chief! I can't stop throwing up! And I'm angry!

[progressivebydesign]

12. We're booming again now that the holidays have passed..

Homes are being snapped up again, and prices are up again. Things will settle down a bit, but there just isn't a bubble burst like some here who are envious of homeowners WISH would happen.

[connecticut yankee]

14. In Southern Fairfield County, Connecticut

there are still many teardowns and new construction at ridiculously high prices.

However, the very high-priced houses are just sitting there, and many more "For Sale" signs are appearing every day. We are now at the start of the Spring Market.

I haven't noticed any lowering of prices, unless people get desperate. Buyers are more cautious and seem to be waiting to see what will happen, rather than jumping in quickly as they did a couple of years ago.

If interest rates go up, the Market should decline, but how much depends on how high the rates go.