Saturday, April 02, 2005

Home Prices Not "Bulletproof"

An accidental release of a report on Friday provides a clue where interest rates are headed; up. "Friday's employment report looked to be a disappointment. Only 110,000 jobs were generated in March,it seemed to allay fears that the economy was overheating. That notion was eclipsed a short time later by an ISM report showing a surge in service sector activity. The data, inadvertently released two business days early, reignited inflation anxieties."

"Everyone knows rates are going up and housing doesn't wear a bulletproof vest. Investors can't ignore that the financial markets are on severe inflation watch," said Anthony Chan, of JP Morgan Asset Management. "Anything that provides a whiff of overheated economic conditions or a hint of increased cost pressure will create nervousness." One assumes that includes home prices.

Thanks to Mr. Naybob for posting the leak in the comments!


At 9:47 AM, Blogger life on the rez said...

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At 10:18 AM, Anonymous Anonymous said...

A friend of mine is going to buy a house this weekend in LA. I tried to talk her out of it a few weeks ago but I guess she is going to listen her mother, the real estate agent, instead. It is really scary when your own mother tells you to buy in a market like this. Who can you trust!

At 10:38 AM, Blogger Ben Jones said...

(It is really scary when your own mother tells you to buy in a market like this)

People have deep feelings on the subject and realtors have a lot at stake. Best of luck to your friend, things are pricey in LA.


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