US housing woes spread around the Globe

April 14, 2008


UNITED STATES – Sal Guatieri

Other news… "Housing Woes in U.S. Spread Around Globe: The collapse of the housing bubble in the United States is mutating into a global phenomenon, with real estate prices swooning from the Irish countryside and the Spanish coast to Baltic seaports and even parts of northern India. This synchronized global slowdown, which has become increasingly stark in recent months, is hobbling economic growth worldwide, affecting not just homes but jobs as well. In Ireland, Spain, Britain and elsewhere, housing markets that soared over the last decade are falling back to earth. Property analysts predict that some countries, like this one, will face an even more wrenching adjustment than that of the United States, including the possibility that the downturn could become a wholesale collapse." New York Times, page A1


Another Housing Meltdown Looming?
http://nbnet/economics/amcharts/apr1608.pdf


Canadian Housing Market—No Longer Immune?
http://nbnet/economics/amcharts/apr1808.pdf

We are expecting another rate cut on Tuesday April 22, could be as much as .50%
Interest Rates and Housing have always headed in the same direction.
What does this mean?
The economy is slowing down, job losses, interest rates are heading lower.
Falling homes sales - Calgary down almost 40%, decline in construction of new homes, layoffs in the construction industry, migration of these workers to Ontario, but most to sunny warm BC.
Result is lower labour costs.
Can't find anyone to do that house renovation? Watch what happens in 6 - 12 months.
Happens every time. This time is no different. History repeating itself.
Are we there yet? Some are finally becoming believers.

Next Are we there yet - the commodities story. Is it a real shortage or a created shortage?