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A REBOUND FOR HOUSING? NOT SO FAST.
Kiplinger Forecasts ^ | 9 November 2006 | Jerome Idaszak

Posted on 11/09/2006 5:17:47 PM PST by MeneMeneTekelUpharsin

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To: FreedomCalls
Well the federal deficit has declined by 50% in the last three years so there's less new debt to finance. Somehow the Treasury always finds buyers for its bonds even when interest rates are low. The Japanese and Chinese continue to buy bonds because that allows them to run a trade surplus with us without driving the dollar down too far and without pushing US interest rates up too far. Pension fund managers and hedge fund managers buy some treasury bonds as a hedge against serious economic weakness, because if the economy gets very weak then stock prices fall, interest rates fall further and treasury bonds rally as the "safe haven" in a tough economy.

Right now the economy is doing fine because business investment is picking up the slack from weaker housing investment. That's the usual pattern where housing and car purchases by individuals lead the economic recovery and business investment strengthens significantly a few years later even as the Fed raises interest rates.

61 posted on 11/09/2006 9:09:36 PM PST by defenderSD (Currently trying to taunt liberals into acquiring hopelessly weak newspaper companies.)
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To: MeneMeneTekelUpharsin

By the time Her Royal Thighnesses' presidency is over, we're going to be using the 2x4's from all of the abandoned houses as firewood to keep warm.

Seriesly though, prices will equalize when I can buy a 3/2 anywhere and rent it for a profit. <---that's the way it's supposed to work.


62 posted on 11/09/2006 9:24:21 PM PST by IYAAYAS (Live free or die trying)
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To: MeneMeneTekelUpharsin

New York City is laughing at the "slowdown". So far anyway. Sales are brisk and prices are holding firm. And rentals are almost impossible to find.


63 posted on 11/09/2006 9:35:49 PM PST by montag813
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To: BurtSB
what part of st pete ? old ne or tyrone square. it matters.

Near the Euclid St. Paul Catholic Church. No evacuation zone. The neighborhood a couple away from old ne. My understanding is that those west of 19 have it harder than us east, and if that's the case, oh my.

64 posted on 11/10/2006 4:21:22 AM PST by nicolezmomma
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To: MeneMeneTekelUpharsin
Housing is in trouble.

Not for long. We just elected an open-borders Congress, so we are still on track to double the population again by about 2040.

Short term slumps I can ride out. The house I bought 25 years ago for $97,500 might slide all the way back to $700,000, or $600,000 in a complete meltdown. I'm not going to panic.

65 posted on 11/10/2006 4:42:10 AM PST by sphinx
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To: Lunatic Fringe

What part of N. Texas? Sounds as if you got a great deal.


66 posted on 11/10/2006 4:48:32 AM PST by Irish Eyes
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To: outdriving
Just like two income families have become the norm in order to meet the rising costs of living. "DINK" is no longer a path to a cushy lifestyle, now it's just survival.

Two incomes have become the norm in the McMansion set. However, I know quite a few younger couples who have elected to have mom stay home with the kids. The solution: they live in much smaller houses, which actually look a lot like the houses we grew up a generation ago, when most moms stayed home.

Expectations have changed. That's not a crisis of incomes; it's a problem of young people wanting too much too soon. Delaying marriage and childbirth (guilty on both counts myself) is part of the problem. Young people get hooked into the two-income lifestyle including the big mortgage long before the rug rats appear. They then find it extremely difficult to take a deliberate step down in housing, neighborhood, and perceived social status, so they get squeezed.

67 posted on 11/10/2006 4:49:09 AM PST by sphinx
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To: sphinx
We just elected an open-borders Congress, so we are still on track to double the population again by about 2040.

I believe you are correct. However, that is also open invitation to eventual war -- such is NOT good for housing.

68 posted on 11/10/2006 4:55:04 AM PST by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: BurtSB
what do you mean by a bushbots ? Are a DU ite here to gloat? the game you dems play is to destroy the economy blame bush and get hillary in the office in 2008

Your post is a perfect example. Making a suggestion that financial conditions are less than perfect under President Bush brands one a both a DU-ite and a democrat planning and hoping to destroy the economy. That's one of the things that bushbots do.

It's really a type of fascism when it comes right down to it. Toe the party line or be slandered.

69 posted on 11/10/2006 5:23:04 AM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: Dog Gone
Some people who recently purchased real estate...three years ago for example, have a lot of 'equity' already.

If a person looks at their home as an investment and not just a place to live...they may want to dump it now...take the profit....and go rent for a year or two.

In theory they could re-purchase their home for 15% less next year.

In many areas, you can now rent a home cheaper than to own it.

70 posted on 11/10/2006 5:30:46 AM PST by DCPatriot ("It aint what you don't know that kills you. It's what you know that aint so" Theodore Sturgeon)
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