Yeowch: Home Prices FALL & 16-Yr. Glut As Housing Bubble Goes Bust

[The Cleaner]

What will happen is that increasing numbers of houses will be unsalable as nobody can afford the higher prices anymore. Hence creating a downward spiral situation.

Sad how people never seem to learn from past bubbles.

Sales slip but supply of homes on the market jumps to 9.6 months, pushing prices down for 12th straight month.
By Chris Isidore, CNNMoney.com senior writer
August 27 2007: 12:49 PM EDT

NEW YORK (CNNMoney.com) -- Homeowners trying to sell last month faced the biggest glut of homes on the market in about 16 years, as declining sales and growing problems in the mortgage market helped push home prices down for the 12th straight month.

The National Association of Realtors said sales by homeowners slipped to an annual rate of 5.75 million last month, down 0.2 percent from the revised 5.76 million pace in June. Economists surveyed by Briefing.com had forecast the sales rate would fall to 5.7 million in the latest reading.

Not only did sales slip but the number of homes for sale jumped 5.1 percent, the group said, meaning there is now a 9.6-month supply of homes for sale, up from 9.1-months in the June reading. It was the biggest supply of homes by that measure since October 1991.

http://money.cnn.com/2007/08/27/news/economy/homesales/index.htm?cnn=yes

[The_Casual_Observer]

1. "soft landing"

My ass.

[Subdivisions]

2. And the markets are reacting predictably. They're down. n/t

[terisan]

3. Carlyle reported to be buying chunk of Home Depot cheap, wonder what other bargains GWBs

economic policies will allow them to grab?

This is the new meaning of Family Planning.