Peter Schiff and Marc Faber — The Economy on The Glenn Beck Show
To put this video in context, be sure to view yesterday’s Peter Schiff’s video. Personally, I cannot say if Mr. Schiff’s forecast will actually come about, but,based on his prior track record, I think it would be prudent to consider that there is a good probIlity that Mr. Schiff will again prove correct.
If you believe hyper-inflation will be good for real estate, you may want to reconsider. Hyper-inflation will occur with increasing interest rates, higher gas, utilities, taxes and maintenance fees. How can home values increase when one is paying $20 for a gallon of gas?
San Diego housing market
Housing Market – Stabilazition or Continued Drop?
Futures contracts that trade on the Chicago Mercantile Exchange forecast a further decline of 14.5% by November 2010, after which home prices likely will begin to revive.
Joseph Davis, the chief economist of Vanguard Group, agrees. Even if the tax break were immediate, "it's not going to be very effective," he says. "It's a down-payment issue. The (credit) door has closed shut for many households. And negative home-price psychology has them on the sidelines."
A subsidy to help buyers meet down-payment thresholds "would have been the biggest bang for the buck in housing stimulus," Davis says.
Overall, Davis judges the massive steps the federal government is making to address the current economic malaise to be "necessary but not a sufficient condition for economic stabilization. And the reason is, they do not directly address the two sources of considerable stress in the economy: One is the issue of solvency in the banking sector, and the second front is housing, and they're both related."
Recent Related Posts:
Existing-Home Sales Up – Home Prices Fall
Fed Spends $750 billion to Lower Mortgage Rates
Housing & Stock Market Worries
Real Estate ‘Insiders’ Forcasts … Dead Wrong for 2008
What real estate market insiders were saying to the public in December 2007 about the 2008 real estate market forecast.
What is really troubling is why these same 'experts' are again interviewed when their past housing forecasts were 180 degrees off. Well, I guess, sooner or later they will be correct! Most who purchased homes in 2008 have seen their equity erode. Here in San Diego, 2008 saw double digit home price drops.
Really, what do you expect an 'economist' working for an industry trade group to say about future trends?
[youtube]AHT5UwiYtDc[/youtube]
Home Prices to Fall 29% in 2009 – National Association of Home Builders
At building industry trade show in Las Vegas, David Crowe of the National Association of Home Builders said: "We have consumer confidence at or near a historic low, and it will probably deteriorate in 2009. The nation has an excess "overhang" of 6.2 million homes for sale, about 1.5 million too many." Crowe said he expects prices to fall another 29 percent this year and new home sales to decline 14 percent.
Also, Mr. Sullivan, chief economist of the Portland Cement Association said: "I see another full two years almost before a significant gain." Mr. Sullivan was one of the first industry economists to predict the current downturn. San Diego Realtors