Housing slowdown will hurt factories in ’07-study,
The cooling housing market and a softening of capital spending will bring a slowdown in U.S. manufacturing activity next year, according to a study released by an industry trade group on Thursday.
… “The housing market has turned, it’s going to be down this year and even down more sharply next year,” Dan Meckstroth, chief economist of the Arlington, Virginia-based trade group, told Reuters.
U.S. Stocks Fall as Housing Slump Deepens,
U.S. stocks dropped for a second day after two homebuilders cut their earnings forecasts, fueling concern that the housing slump may curb economic growth.
The housing collapse heard round the world,
…But the peak has passed, and the consequences of the deflating bubble are buffeting the housing market, in Washington and across the United States.
What sold in a weekend here last year is taking months to unload. And increasingly nervous home sellers are slashing prices to get rid of properties before their value sinks even further. One buyer recently threatened to walk away from a signed contract on a $1.6-million house unless the seller took $100,000 off the price to reflect the drop in value since the deal was struck. The seller quickly buckled, fearing the house might be worth even less if put back on the market today.
“Look how fast prices were going up. The same thing is happening on the way down,” observed Ms. Gaus, who’s been selling homes in Potomac for 16 years.
Home sales drop for 3rd month in row,
The five-year housing boom is showing increased signs of cooling, and that’s likely to mean slower growth for the entire national economy. The big question now is whether home prices will come crashing to earth with even more severe consequences.