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September 5, 2006

Housing Prices Weakest Increase Since 1999 - Layoffs Surge 76 Percent

-- by Dave Johnson

U.S. home prices growing more slowly in second quater - Weakest quarterly increase in home equity since 1999,

"These data are a strong indication that the housing market is cooling in a very significant way," said James Lockhart, OFHEO director. "Indeed, the deceleration appears in almost every region of the country."
It's the fastest deceleration in the index in its three-decade history, OFHEO said.
... Prices fell in the second quarter in four states: Michigan, Massachusetts, Ohio and Indiana.
Prices in Hawaii, Maryland, Virginia, Nevada, New Jersey, the District of Columbia, and California cooled to less than 0% annualized growth in the second quarter. [emphasis added]
And in other housing news:

Hot real estate market gets chilly in Bakersfield - Housing inventory quintuples as boomtown of 2005 returns to Earth,

The housing stock nearly has quintupled and prices are virtually flat when compared to last year's levels. Home sale time-frames now are measured in months, not days.
"Yeah, we miss those times," Darrell Muhammed, a local agent, said of last year's market.
While average prices have yet to tumble, concern mounts that an ever-increasing housing inventory, coupled with coming hikes for variable rate mortgage holders, could send the market south in a hurry.
US Aug layoffs surge, housing slowdown cited,
Planned U.S. layoffs surged 76 percent in August compared with the previous month amid signs that a slowdown in housing was starting to have an impact on employment, an independent report showed on Tuesday.

... "Job-cutting in real estate this year is nearly double last year. However, we have not as yet seen a major uptick in job cuts in the sectors we might expect during a significant slowdown. The housing slowdown has not had a major impact on the job market, yet."[emphasis added]

Posted by Dave Johnson at September 5, 2006 8:17 AM

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Comments

Well, I think the real estate market is just taking a breather. My agent told me the market will be back soon. She is urging me to buy right now before prices go back up. Bakersfield will always do well because it is in California. A lot of people want to live there. Layoffs will not affect prices because a lot of people will still have jobs and they will want to have second homes. People who are laid off can always move to India and get one of those "offshore" jobs which pay better than the ones we have here.

Posted by: hugod [TypeKey Profile Page] at September 6, 2006 8:35 AM

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