12 April 2007

US Bubble: POP!

Home prices set for first drop in 40 years
The National Association of Realtors said Wednesday it expects its measure of home prices to fall this year for the first time since the group began keeping track nearly 40 years ago.

In its latest monthly forecast, the real estate group said it expects a 0.7 percent decline in the median price of an existing home sold in 2007. A month ago it had been projecting a 1.2 percent increase. Half of all homes sell for more than the median and half for less.


And thus endeth the US property bubble. With it now careening down a hill nervous investors will start shifting money out of property as quickly as possible worldwide.

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