U.S. Housing Market - Not the Only One Feeling the Pain

As reported by Inman News:

"LONDON -- The European housing markets are turning as bitter as vinegar on chips as property sales and prices come tumbling down.

Property values fell to their lowest level in 30 years in September, according to the Royal Institution of Chartered Surveyors. According to another report, home sales fell to 17,000 in June 2008 from 105,000 in June of 2007, and that was before the financial collapse of late summer and fall.

Prices have fallen 15 percent in the last year with some local experts predicting a 50 percent drop before the bottom is reached. As many as 60,000 homeowners are dipping into "negative equity" per month. The U.S. market began to fall in late 2005. The U.K. market stayed strong until last year, but now it is falling fast."

"Doom and gloom" continues to rule the day in this ever growing global arena. The world, in it's expansion, continues to grow smaller and much more intimate.

Housing Prices to Fall 10% More?

As reported from the Wall Street Journal:

Fitch: Housing Prices Have 10% to Go Before Stabilizing

Fitch Ratings put the housing slump in perspective with a note out today looking at when prices will start to stabilize. Its estimates are based on Case-Shiller housing data and assume a rate of inflation of 3%:

"Fitch's analysis shows that the 29% rise in prices realized between 2004 and 2006, representing one of the largest price growth periods ever recorded, has been reversed. With prices returning to early 2004 levels, Fitch believes that most of the additional 10% decline, which will bring prices back to levels seen in 2003, will occur over the next eighteen months. Fitch then expects declines thereafter to moderate."

A loss of an additional 10% over the next 18 months could be considered a positive since housing prices have been dropping sharply and quickly in many markets. The obvious negative, another 10% loss ... wow. When will this end?

The Sky’s Falling!

Just when you think it can't get any worse. Just when you think the government throwing more money at it will fix the problem. Just when you think .... oh well, what's the point, we all know it's a disaster out there.

Are you starting to wonder if anyone has a clue as to what's going on and what needs to be done to get this problem fixed?

Our economy is deteriorating and doing so frighteningly fast. The Dow is off nearly 40% over the past year, losing over 2,271 points, or 20.1%, during the last seven sessions of trading. The Nasdaq is down more than 40% over the past year as well. Housing has been bruised and battered beyond belief. We could go on and on and ...

It seems like the sky is falling but if you look really close, far off in the distance, you will see what looks to be a light. Yes, that's right, a light. It may be hardly noticeable but make no mistake, it's there.

Do I need to remind you to take notice of how low housing prices are with stocks not too far behind?

Remember when you thought housing prices would stretch to the moon but you forgot that little thing called a cycle? Don't forget about Mr. Cycle. Just when you think he's gone, he has a mysterious way of showing up again. Shortly to follow are the endless cries, "If I only ...", "I should have ...", "I didn't realize ..."

Yes, this will cycle too.