Residential Activity "Now Behind Us"
At least one construction publication sees an end to the housing boom. "By mid-year, the slowing trend in construction spending will reappear. The period of peak growth in construction activity in this economic expansion cycle is now behind us."
You don't hear industry types mention the 'B' word very often. "Market by market, be alert for the housing bubble to burst when home prices increases stop and speculators scramble to sell their investment homes."
Don't miss the construction spending table at the bottom of the page.
11 Comments:
Yeeehaaaaaa !
Let the crying begin !
I can hardly wait for people to come to the realization that house prices don't magically increase year after year. This should be good !
a bit of a surprise. the builders say no where but up, and here a trades guy says its over.
but hold, what is happening to the ten year note..still languishing, lower than the last year, at around 4.25%...to me it looks like MMs flocking to bonds as stocks- and even the real estate- looking risky. It increasingly looks like that if bubble were to pop, rates would still be very low..not a bad news for someone still waiting to buy a home..
Presently, the perfect storm is brewing for someone who has a ton of cash... just wait about 6 months and you will be massively rewarded... home prices will be significantly down and fixed rates will be around what they are today... short terms are the ones that are going to get hit... so, if you have an ARM, you are going to get squeezed whether the 10 yr. bond goes up or not...
A flat yield curve will crush creative financing, which is the last remaining weapon in the bidding wars. Buyers will have to drop out. Unreasonable expectations will be realized and corrected. Slowly but firmly.
Time and events will tell.
It's going to be a lot longer than 6 months before us market holdouts will want to buy. It will be a long slow painful process.
Nothing to worry about. Treasury Secretary Show says there is no bubble. You are now free to buy more condos. Remember, they ain't making real estate no more.
nayrab,
Yikes... chill-out, dude... it's not all that bad... the world isn't going to end tomorrow... and those predictions are extreme and wrong... the boomers selling in 3 years from now isn't going to cause this bubble to pop... it's going to be this flat yield curve... it's going to squeeze a ton of speculators out of this market...
Did anyuone see the movie :Soylent Green" ?
Spelling correction
anyone
Yikes
Ok, I guess maybe not. It was made in the 70's. About the future where the population got so big that society broke down and the only food was these cookies that the "State" handed out. Turns out the cookies were made from old people. Come on someone must have seen this flick!
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