The US property market has seen some of the weakest data since house prices finally began to recover after the financial crisis.
September turned out to be a particularly ugly month in the US property market as the median price of a new home fell 9.7%. But this is nothing compared to the likely speed at which prices will fall next year.
Marc Lichtenfield reports back on the latest developments in the US housing market – and reveals why he’s urging anyone with a house to sell to offload it as soon as possible.
Tuesday brought more bad news from the sector that kicked off the credit crisis. The Case-Shiller Home Price Index registered its biggest fall since it began in 1987 – and the figures are set to get worse.
The US housing market is critical to the health of the US consumer – which means it is also crucial for the global economy, say Andrew Selsby and John Robson of RH Asset Management. But the stream of bad news coming out of the sector suggests that the US property market is on its last legs. Is a hard landing for the US economy just around the corner?
Many financial commentators believe the US housing market is set for a soft landing. But the property market bears all the classic hallmarks of a bubble, says Kevin Duffy of Bearing Asset Management.
The whole buy-abroad boom has been predicated on one single promise: you cannot lose with property. But the truth is very different, says Merryn Somerset Webb.
Making money in sub-prime mortgage lending was so easy, it looked almost too good to be true. Guess what? asks Bill Bonner. It was.
Subprime could – like internet stocks earlier in the decade – be the pin that pricks a much larger bubble, says Stephen Roach. So what form will the spillover from the housing market to the wider economy take?
Rising foreclosure rates could exert further downward pressure on US house prices. Will US mortgage lenders bear in mind the lessons of the last UK house price crash and act to contain the subprime collapse?
Ben Bernanke may have assured US politicians that the US sub-prime mortgage collapse is ‘under control’. However, he has a lesson to learn from the last UK housing crash about the dangers of cheap money.
Subprime mortgage loans have boomed in the US, but the bursting of America’s housing bubble now threatens major repercussions for financial markets. How far will the rot spread?
Some property bulls may be jumping for joy at the news that US housing starts rose again in December. Are they right in thinking that the market has troughed? Look a little deeper and you get a nasty surprise.
If the festive season’s giving you a headache, says John Stepek, spare a thought for American Will Hertzberg, proud owner of a ‘pay option’ loan. That’s a mortgage on which monthly payments don’t even cover the interest.
Cris Sholto Heaton looks at how the huge number of risky loans issued to fuel the US housing market could worsen the fallout.
Domino economics is the simplest of all concepts: when one domino falls an adjacent domino will subsequently fall and so on and so forth. One domino on its way down is the US housing market – but what will fall next?