Comparing Recent Housing Data with 2007 -- Troubling Similarity?
ZeroHedge.com posted an interesting article today, by Michael Snyder (of the Economic Collapse Blog).
You can link to the complete ZeroHedge.com article HERE.
The article begins by comparing two charts from the Federal Reserve Bank of St. Louis. One illustrates the precipitous decline in existing home sales that took place in 2007. The other shows a very similar decline that has taken place from summer 2013 to present day.
Other charts illustrate the decline which has recently taken place in new home sales. A discussion regarding the decline in mortgage originations is also provided.
I would be interested in hearing observations from practitioners in various parts of the United States. Here in the Phoenix metro, our inventory has increased and sales are in decline vs. the rebound we experienced in calendar 2012 and 2013.
As most know, the recovery in the real estate market was fueled by the low interest rate policies of the Federal Reserve. If the housing market is rolling over now (even in an environment of accomodation) -- what does that have to say about the current health of the economy?
Comparing Recent Housing Data with 2007 -- Troubling Similarity?
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