"Prices of U.S. single-family homes in October plunged a record 18.0 percent from a year earlier, according to the Standard & Poor's/Case-Shiller Home Price Indices released on Tuesday that indicated a U.S. housing market in the throes of a deep recession"
"The bear market continues; home prices are back to their March 2004 levels." David M. Blitzer, Chairman of the Index Committee at Standard & Poor's, said in a statement"
As of October 2008, the 10-City Composite Home Price Index is down 25.0 percent from its mid-2006 peak, and the 20-City Composite Home Price Index is down 23.4 percent, he said
Economists believe the U.S. housing market will not begin to recover until home prices fall far enough to stimulate demand, which has dropped off precipitously as potential buyers stay sidelined
Go figure... So, the wake up call for SA is still coming. That average, not-in-Clifton 1.6 bar property is really only worth about 800k to 1.1 bar and despite interest rate drops, the market will not recover soon because remember? ... credit is tight.
I have to say, I earn a "higher income" salary, and when I open the papers and magazines, I still cannot afford 95% of the properties!!! Its really sad and I expect a BIGGER bursting of the bubble in the next year (hopefully 6 months).
Interesting to see that the greedy are victims of their own circumstances!
6/ Average household income in the US is 50,000 - average total national debt owed by every household - 500,000
7/ Historically empires have a natural cycle of 224 years - that would be 1999 for the US. Makes you think.
8/ How much more expensive does it cost to buy my house compared to renting (buying includes a 100% bond + rates + 2% annual maintenance costs) ..... 4 times more expensive.
9/ How much my house has dropped in value this year - 20%.
The US and the UK are in big poo. If we can make a huge dent in the ANC majority in the coming elections, maybe SA might not be such a bad place to ride out the global financial tsunami.
Happy new year ... but fasten those seat belts - 2009 will be a very scary one.
I entered the property trading and flipping market in September after selling a commercial property which released some cash for me.
True as bob, i have never made more money as i have in the last 4 months.
People like CJ say the market is down...it is but at the right price, it is booming. I have sold 6properties in 4 months all withing a month of buying them. witht he average profit of R150K EACH.
Any person with half a brain and cash nowdays can make a killing at the expense of all the sods who bought at a high price two to three years ago.
i totally agree with th following comments: "Any person with half a brain and cash nowdays can make a killing at the expense of all the sods who bought at a high price two to three years ago". i am in the process of buying my second house with a reduction of R1M on each. they were both over R3M so i am doing very well and especially when you are a cash buyer
Well done guys, wow I would love to have a beer with you and gloat about how you got the gold and the sods got the shaft. Say why don't you start a business with the money, employ a few desperately poor people and add value to our economy?
its the capitalist system. buy low and sell high. it doesnt matter what business you are in or how many people you employ. If you want to do good work, work for a charity
11 comments:
This on CNBC today...
"Prices of U.S. single-family homes in October plunged a record 18.0 percent from a year earlier, according to the Standard & Poor's/Case-Shiller Home Price Indices released on Tuesday that indicated a U.S. housing market in the throes of a deep recession"
"The bear market continues; home prices are back to their March 2004 levels." David M. Blitzer, Chairman of the Index Committee at Standard & Poor's, said in a statement"
As of October 2008, the 10-City Composite Home Price Index is down 25.0 percent from its mid-2006 peak, and the 20-City Composite Home Price Index is down 23.4 percent, he said
Economists believe the U.S. housing market will not begin to recover until home prices fall far enough to stimulate demand, which has dropped off precipitously as potential buyers stay sidelined
Reference: https://www.blogger.com/comment.g?blogID=27430221&postID=4505894541825739256
Go figure... So, the wake up call for SA is still coming. That average, not-in-Clifton 1.6 bar property is really only worth about 800k to 1.1 bar and despite interest rate drops, the market will not recover soon because remember? ... credit is tight.
I have to say, I earn a "higher income" salary, and when I open the papers and magazines, I still cannot afford 95% of the properties!!! Its really sad and I expect a BIGGER bursting of the bubble in the next year (hopefully 6 months).
Interesting to see that the greedy are victims of their own circumstances!
A few other interesting snippets I have come across recently -
1/ Median house price drop in California is 50%
2/ Average house price in Detroit is now $19000 - used to be $100,000 not so long ago
3/ Some US experts are saying the US housing crash is still only half way through.
4/ Total US wealth destruction in last year is 7.7 trillion dollars
5/ This is what 7.7 trillion $ looks like - look at the final image and multiply by 25 -
http://m3.torispics.com/piles/?s=315billiondollars#nav-holder
6/ Average household income in the US is 50,000 - average total national debt owed by every household - 500,000
7/ Historically empires have a natural cycle of 224 years - that would be 1999 for the US. Makes you think.
8/ How much more expensive does it cost to buy my house compared to renting (buying includes a 100% bond + rates + 2% annual maintenance costs) ..... 4 times more expensive.
9/ How much my house has dropped in value this year - 20%.
The US and the UK are in big poo. If we can make a huge dent in the ANC majority in the coming elections, maybe SA might not be such a bad place to ride out the global financial tsunami.
Happy new year ... but fasten those seat belts - 2009 will be a very scary one.
I entered the property trading and flipping market in September after selling a commercial property which released some cash for me.
True as bob, i have never made more money as i have in the last 4 months.
People like CJ say the market is down...it is but at the right price, it is booming. I have sold 6properties in 4 months all withing a month of buying them. witht he average profit of R150K EACH.
Any person with half a brain and cash nowdays can make a killing at the expense of all the sods who bought at a high price two to three years ago.
i totally agree with th following comments:
"Any person with half a brain and cash nowdays can make a killing at the expense of all the sods who bought at a high price two to three years ago".
i am in the process of buying my second house with a reduction of R1M on each. they were both over R3M so i am doing very well and especially when you are a cash buyer
Well done guys, wow I would love to have a beer with you and gloat about how you got the gold and the sods got the shaft. Say why don't you start a business with the money, employ a few desperately poor people and add value to our economy?
Sure, start a business and get lumped with high rentals, staff costs, BEE credentials crap, affirmative action, affirmative shopping (theft) etc.
I'd rather flip property and be a one man company that open a biz and get just headaches.
Sure, start a business and get lumped with high rentals, staff costs, BEE credentials crap, affirmative action, affirmative shopping (theft) etc.
I'd rather flip property and be a one man company that open a biz and get just headaches.
Well guys I hope you never end up in a desperate situation and someone fleeces you...and then gloats about it.
its the capitalist system. buy low and sell high. it doesnt matter what business you are in or how many people you employ. If you want to do good work, work for a charity
Who fleeced who?
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