Article - 15 signs the housing market will totally collapse

[shotgunner]

I wonder how total collapse is defined i.e. what further percentage drop is anticipated equals "total collapse"? What are the implications for the banking industry, I am assuming some additional large number of homes with mortgages would go upside down and owners potentially walking away.

15 Signs The U.S. Housing Market Is Headed For Complete And Total Collapse

 

[Onward]

The article has a sophomoric, alarmist tone that really makes me question the author's credibility. He writes like someone desperately trying to drive the price of gold higher.

Two-bedroom condos in my area are already cheaper than a decent new car. They can't "collapse" much further.

 

[shotgunner]

Two-bedroom condos in my area are already cheaper than a decent new car. They can't "collapse" much further.

That is not the case in the part of New England where I live. Our unemployment remains below 6%. Home prices have fallen about 20% but I have not seen any Condos for sale in this area under $100K. We still have some room to fall in this area.

The article is without a doubt dripping with fear as a way to garner the attention of the reader. I originally saw it via Comcast.net when going to my e-mail and along with title was a picture of a house on fire.

 

[MichaelB]

Housing industry "collapsed" 3 years ago. Now it's finding bottom.

What's this guy's next article? Problems ahead with the banking sector?

 

[traineeinvestor]

The competition for this economic cycle's "death of equities" headline is getting pretty intense.

 

[audreyh1]

The competition for this economic cycle's "death of equities" headline is getting pretty intense.

Sounds good to me!

 

[tryan]

The article reads like it was regurgitated from 2, 3 or even 4 years ago. Half of the charts could be read as "health restoring" rather than doom n'gloom. Just didn't see any value added.

 

[jIMOh]

The truth is that this is not a short-term downturn in the housing market. During the past two decades, an insane amount of debt fueled an artificial housing bubble that drove home prices to ridiculous levels. Now the U.S. housing market is trying to correct itself, and no matter how many trillions of dollars the U.S. government throws at the problem the fundamentals of the marketplace are still going to have their way eventually.

Read more: 15 Signs The U.S. Housing Market Is Headed For Complete And Total Collapse

Here are the 15 signs

Home sales at depressing lows
Construction of new homes at a standstill
Americans not eager to purchase homes
Record foreclosures
Repossessions are at an all-time high
Banks writing off a huge amount of mortgage debt
Americans still falling behind on mortgage payments
Banks have tightened lending standards
Home prices are still too high
Unemployment levels are still in the doldrums
Growing number of Americans going bankrupt
Even Barack admits the housing market's in the dumps
Tax credits for home buyers inflated the US housing market
Fannie and Freddie are in shreds

But without Fannie Mae and Freddie Mac we might not even have a mortgage industry at this point. Fannie Mae, Freddie Mac, the Federal Housing Administration and the Veterans Administration backed approximately 90 percent of all U.S. home loans during the first half of 2010.

US economy is drowning in debt


It will get worse before it gets better, fix unemployment and free market should correct the rest IMO.

 

[ziggy29]

It will get worse before it gets better, fix unemployment and free market should correct the rest IMO.

True. Of course there's the rub -- people disagree on how to "fix" it and to what degree the government should even try.

But yes, get people back into decent jobs again and much of the problem neatly goes away. If only it were as easy to *do* it as it is to identify the problem...

 

[TooFrugal]

I agree it wasn't a balanced article in anyway. Still, the author had a lot of great points and backed most of them up with actual statistics that were current as of this year.

 

[jIMOh]

True. Of course there's the rub -- people disagree on how to "fix" it and to what degree the government should even try.

But yes, get people back into decent jobs again and much of the problem neatly goes away. If only it were as easy to *do* it as it is to identify the problem...

not sure if you were asking for ideas LOL

but I could find lots of ways to spend 750 BILLION once and create jobs
the government did that twice and where are the jobs LOL

try this

give 1 mil to 750 school districts, mark 500k for teacher salaries over 10 years (so 1 teachers making 50k over 10 years or 2 teachers making 25k over 5 years...) and mark 500k for technology upgrades (meaning buy things which companies supply).

that is 750 mil, 1/1000 the size of the stimulus, do this a few times to many different industries...

like 750 mil to build roads and bridges or 750 mil to upgrade technology of some government entities (like the welfare administration or something) and 750 mil for special ed programs and such.

 

[traineeinvestor]

not sure if you were asking for ideas LOL

but I could find lots of ways to spend 750 BILLION once and create jobs
the government did that twice and where are the jobs LOL

try this

give 1 mil to 750 school districts, mark 500k for teacher salaries over 10 years (so 1 teachers making 50k over 10 years or 2 teachers making 25k over 5 years...) and mark 500k for technology upgrades (meaning buy things which companies supply).

that is 750 mil, 1/1000 the size of the stimulus, do this a few times to many different industries...

like 750 mil to build roads and bridges or 750 mil to upgrade technology of some government entities (like the welfare administration or something) and 750 mil for special ed programs and such.

Or to keep it real simple and keep the admin costs to a minimum, just give every voter/taxpayer a coupon that has to be spent on goods or services within 12 months or it expires worthless. People could chose whether to spend it on cars, school fees, hospital bills, mortgage payments, tax bills or whatever. Even better, make them tradeable - if people want cash, they can sell them at a discount to someone else.