Monday, August 23, 2010

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

Words like total collapse and dying tends to be associated with the "selling of fear". This label, in turn, can lead to instant discredit or laughable denial.

Unfortunately, the cyclical low in housing is not due for years (decades). One-dimensional thinking, such as the price of my home is no longer falling in U.S. dollars so things are getting better, only ensures that most will be caught flat-footed by the complex nature of a multidimensional world. In constant currency terms, gold, the value of home prices in America continues to slide into the minor cyclical low.

As the article suggests the signs are there, but few are ready to acknowledge it until the majority of the damage has been done. Simply follow the money, listen to the markets, and ignore the rest.

U.S. Median Home Price (MHP) to Gold:


S&P Homebuilders (HB) to Gold Ratio:


The U.S. housing market is dying. You will only hear hints of this on the mainstream news and from the politicians in Washington D.C., but as statistic after statistic continues to roll in, the reality of what is happening is becoming very difficult to deny.

Up until the end of April, the giant tax credit that the U.S. government was bribing home buyers with helped stabilize the real estate market, but now that the tax credit has expired the decline of the U.S. housing market has resumed.

Source: businessinsider.com

Thanks Bob.

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