It hasn’t even started yet, and they use the ‘D’-word: Housing Prices to Drop, Report Says,
Housing prices, slumping after a five-year boom, are projected to decline in more than 100 of the nation’s metropolitan areas…
… The … firm projects that the median sales price for an existing home will decline in 2007 by 3.6%, which would be the first nationwide decline for an entire year in home prices since the Great Depression of the 1930s. [emphasis added]
This forecast is widely reported, which means that it will be seen by buyers and sellers, and will cause them to adjust their expectations.
Along those lines, a warning to UK investors: US housing market ‘in danger zone’,
British investors who own property in the United States should take a long-term view on the market and focus on maximising rental income as the US teeters on the brink of a housing market price reversal, says Assetz.
… Stuart Law, managing director of Assetz, said: “The U.S. is definitely in the danger zone but we are not currently certain how severe the downturn will be. Holiday home buyers who are getting regular use out of their property are unlikely to be affected in the long term, but investors who were hoping to sell their property on quickly are no longer set to gain and are likely to face losses if they sell now.
Think UK investors will be showing up to pick up some of that excess inventory and bail us out? Me, neither.
t’s not just homeowners and homebuilders that have a lot to lose if tremors roiling the real estate market turn into a full-scale quake.
Manufacturers of everything from drywall to the kitchen sink are also vulnerable to stagnant or declining sales as fewer houses change hands.
“Do a mental walk around your house and look at appliances and fixtures,” to see what companies are exposed to the housing market, said Sam Stovall, chief investment strategist for Standard & Poor’s.