Saturday, September 23, 2006

News ***Big week ahead***

Housing market news arrives on Monday, with the release of August existing-home sales. Of key importance will be inventory figures, which reached record levels in July.

On Tuesday, the lone economic indicator slated for release is the consumer confidence index.

Housing will be back in the spotlight Wednesday, as the Commerce Department releases August new-home sales. New-home sales are anticipated to drop.

Meanwhile, August durable good orders also will be released Wednesday. The orders are expected to rise.

"Housing is going to see continued weakness and could possibly surprise on the downside, but that will only make the economy look weaker than it actually is," says Milton Ezrati, chief economist at Lord Abbett. "On the other hand, the durable goods data should come in relatively strong because corporations are cash rich and they are spending on new equipment."

"September is traditionally terrible for investors, but this year, the stock trader's almanac has been proven wrong," says Wachovia. "The big problem going into the final week is that the market is overextended, and we started to see that with the selloff at the very end of last week."

What about October? (Fires, Earthquakes, and Market Crashes)


Blogger hemorrhoidforhousing said...

Fresh from

David Lereah, the Realtors’ chief economist, said the drop in prices had been expected, indicating that sellers are finally starting to lower their asking prices in the face of weaker sales and soaring inventories.

The inventory of unsold homes rose 1.5 percent to an all-time high of 3.92 million units. At the August sales pace, it would take 7.5 months to sell the backlog of unsold homes, representing the longest period since April 1993.

Lereah predicted that prices would likely keep declining for the rest of the year.

“We do expect an adjustment in home prices to last several months as we work through a buildup in the inventory,” he said. “With sales stabilizing, we should go back to positive price growth early next year.”

This guy is slicker than a salamander!

8:47 AM  

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