Willi how deep you think this Housing thing going?

[Assasin]

I spoke with a plumber yesterday and he told me things really slow as developers in the North East not selling and so they are not building, laying off workers and not paying subcontractors. He is a trained plummer but he said he has to be doing anything including sheetrocking right now to stay afloat.

Spoke a realtor in the New York area and he has been a high flyer over the past few years but he told me he is thinking about returning to work as a lab manager as things are that slow.

Spoke to a realtor in the South East and it is same story, no sales, and builders are very close to bancruptcy, they are praying for things to start move. It look pretty more serious than I thought it would. If this continue it is going affect the economy bigtime.

[Willi]

I spoke with a plumber yesterday and he told me things really slow as developers in the North East not selling and so they are not building, laying off workers and not paying subcontractors. He is a trained plummer but he said he has to be doing anything including sheetrocking right now to stay afloat.

Spoke a realtor in the New York area and he has been a high flyer over the past few years but he told me he is thinking about returning to work as a lab manager as things are that slow.

Spoke to a realtor in the South East and it is same story, no sales, and builders are very close to bancruptcy, they are praying for things to start move. It look pretty more serious than I thought it would. If this continue it is going affect the economy bigtime.

Oh the housing story is over. It dun.

However, as to the wider econ impact, it depends on how well the Fed can shift from one bubble to another. They shifted well from dot.com to Housing. Then they tried to shift to commoditities, but that did not work as well. It could be financial reckoning time. It gives me no joy to say so, but I am not sure that a soft landing can be engineered.

[Assasin]

thanks they had a record number of foreclosure last month.

With the current credit crunch do you think many people going to purchase anytime soon? even with lower prices?

[MdmeX]

Well, people still have to live somewhere. ...And some people the monthly amount that they're pumping into rent, could be going into mortgage (= tax write-off). So as long as some people can get the mortgage and have a decent down-payment they'll buy.

[Me]

Multifamily buildings benefiting big time. Defaults and vacancy down.

[Willi]

Multifamily buildings benefiting big time. Defaults and vacancy down.

Yep, segments will have differences. Mid-America will do better than the Coasts, for example.

However, relying on need based Housing will not fuel a bubble. You need rampant speculation and "flippers".

[Karl]

thanks they had a record number of foreclosure last month.

With the current credit crunch do you think many people going to purchase anytime soon? even with lower prices?

Yuh taking some serious money down the drain - not available - contraction is consumer spending. Look to 2010 (my 'Dr. Phinn' look) before the current overbuilding & abundance of re-sales is absorbed. Remember the homes that go into foreclosure add to the stock on sale and further slow the market.

Next are the segments of the society that lent money with those homes as collateral. - The credit sector all financial institutions with housing as under-pinnings...and or deep 'hands' in/aligned with/attached with housing shall tremble. Hey when the big boys tremble we all feel the shock.

2010 is a hell of a long way off for bottoming out! How long will it take after for the housing market to climb back to reasonable levels?
Looking around myself for 'add-on' Funny! ...but, not!