HUD Chief: Home Prices ‘Very Unlikely’ to Fall Further
Submitted by bobbyw24 on Tue, 07/05/2011 - 07:03in
Homes in the U.S. are the most affordable they’ve been in decades and prices may start to climb as soon as the third quarter, Housing and Urban Development Secretary Shaun Donovan said Sunday.
“It’s very unlikely that we will see a significant further decline,” Donovan said on CNN. “The real question is when will we start to see sustainable increases. Some think it will be as early as the end of this summer or this fall.”
Home sales have increased in six out of the past nine months and the number of property owners in default is declining, Donovan said on CNN’s “State of the Union” program. Housing prices will begin rising as the number of foreclosures declines, he said.
http://www.moneynews.com/Headline/housing-obama-hud-donovan/...
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A houses are consumptive
A houses are consumptive liabilities; what idiot would want their prices to increase?
this
just defies logic and shows how stupid they are. If homes aren't selling, the values have to go down to make anything move.
Well, then, house prices
will most assuredly be falling further.
Demographic trends support
Demographic trends support your view. Housing will be stuck in the doldrums for decades.
www.gunowners.org
The prices shouldn't be held artificially high.
The prices should come down so people can afford to buy houses again. We got into a mess where everyone was losing their homes because they couldn't afford them so why would we want to keep those prices high?
Interest rates have an effect on asset prices.
If a house has a market value of $500,000 when the prevailing interest on US 10 year treasury debt is 3%, then what is the house worth if the interest rate increases to 8%?
The fact that the market values the house at $500,000 when interest rates are 3% implies that the net income equivalent value of the house is $15,000 annually (3% X $500,000 = $15,000). So if the interest rate moves up to 8%, then, all other things being equal, the value of that house should move down to $187,500 ($15,000 / .08).
When interest rates are at historic lows, they only have one way to go, and that is up; consequently, there is great danger that asset values will decline. How much longer do you think the FED can hold the markets at bay with its low interest rate policy?
Liberty isn't given to us; it is taken by us, and if not, we will not have it.
That's about as succinct and explanation as I've ever read
You demonstrated verbal economy and clear cause-and-effect.
If I could be so brief, I might be more persuasive.
Bad news for home owners
Guess things are going to continue to fall.
When CNN's lips be moving, they are lying!! Again
nt