House price growth is expected to resume its slowing trend this year due to slower economic growth and the lagged impact of last year's interest rate hikes, a property strategist said.By 2008 the US property market is going to be in total meltdown which is going to reverberate through the rest of the world.
John Loos, property strategist at FNB Commercial Banking, said that a more sustained strengthening was only anticipated from 2008 on.
26 March 2007
Banks: Hold On Till 2008!
House price growth running out of steam
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I see over at flippersintrouble.com, one house bought 14 months ago is being offered for sale at a 49% loss - 2 others are also over 40% loss, 3 are over 30% loss and most others are between 15% and 30% loss ... and of course, these are just the latest offered prices, sales have yet to be made.
Over the next 12 months many US home buyer's bond payments are going to increase by 50% as they were given special starter prices - that's when people will really start squealing.
Already the stock of available US homes for sale is at a 16 year high - it would take 8 months of normal sales just to clear these.
The Americans are still in denial to the bad times ahead - no one really knows the devastation that will be caused when the largest global property bubble ever known bursts ... but a few wise individuals see the writing on the wall and are warning that is is going to be devastating ... and you can be sure that emerging economies like SA are going to follow the US into the storm ... so reassuring words from banks that the good times will be returning again next year sound to me like the talk of nervous men realising that payback time is heading there way ...
Lennar Corp., the largest U.S. homebuilder by revenue, said earnings plummeted 73 percent in the fiscal first-quarter as demand waned in the worst housing slump in more than a decade.
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