Wall Street Journal Says “The Housing Crisis Is Over”
By admin | May 8, 2008
So do you think the “housing crisis is over?” Here are a couple of quotes from the article:
By CYRIL MOULLE-BERTEAUX
May 6, 2008; Page A23 of the Wall Street Journal
“The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.
How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won’t happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor.”
“The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.
In the past five major housing market corrections (and there were some big ones, such as in the early 1980s when home sales also fell by 50%-60% and prices fell 12%-15% in real terms), every time home sales bottomed, the pace of house-price declines halved within one or two months.”
”We are of course experiencing a serious housing bust, with serious economic consequences that are still unfolding. The odds are that the reverberations will lead to subtrend growth for a couple of years. Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now.”
We want to know what you think! Please comment below and don’t forget, you can read this full article by visiting this page.
Topics: Market Updates |
May 14th, 2008 at 7:22 am
Well, I’m not entirely sure if it’s over yet… My house has been on the market for 6 months here in Atlanta. My agent is showing the home a lot more now, but no offers yet
May 15th, 2008 at 10:25 am
Hey Wendy.
Real estate is, and will always be, local. Just give it some time, if your agent is showing it a lot, chances are it may sell! Just stay positive and I’m sure you’ll get something soon.
June 11th, 2008 at 2:00 pm
Timothy is absolutely correct. Real estate is local, but from what I hear, things are starting to turn around. Check out:
http://money.cnn.com/2008/06/09/news/economy/pending_home_sales/index.htm?postversion=2008060911