‘The Wheels Are Coming Off’ – a terrifying roundup of the problems battering housing, including a reference to Bloomberg yesterday, U.S. Home-Price Gains Slow as Housing Slump Deepens,
U.S. home-price growth slowed during the second quarter from a year earlier in the sharpest three- month plunge on record, according to a government report issued today that indicates this year’s housing slump is deepening.
“The wheels are coming off the housing market,” said Scott Anderson, an economist at Wells Fargo & Co. in Minneapolis. [emphasis added]
Keep in mind, this is only the very start of the popping of the housing bubble. It’s only just hitting the news in a way that spreads out to the broad public. It is only after it becomes generally understood that housing prices are not going up anymore and people take price appreciation out of their buying calculation that we will start to see real changes. Prices have a long way to fall before things get back to normal.