..........."The Trouble in Housing Trickles Up"
"The Trouble in Housing Trickles Up," see http://www.nytimes.com/2008/06/01/business/01town.html. Powerful deflationary forces gather momentum. Bad news for gold.
Part of the article:
"Nearly a year after the mortgage meltdown became front-page news, the Schneiders’ travails reflect how the nation’s housing woes have moved beyond subprime borrowers in working-class neighborhoods and into the realm of upper-middle-class homeowners.
Last week, a new report showed that house prices nationwide were off 14.1 percent from a year ago, while the Commerce Department said sales of new homes remained near their lowest levels since 1991.
THE market here isn’t like those of Florida or California, which have followed a boom-and-bust pattern, or of Cleveland, where foreclosures have overwhelmed entire neighborhoods. Instead, what’s playing out here is a kind of paralysis, with wide swaths of the market frozen and only the very top end showing signs of life.
This may hint at what’s in store for other real estate markets around the nation that managed to avoid the excesses of the last decade but still find themselves struggling now. Indeed, the recent economic trajectory of Greensboro, a city of 242,000 smack in the middle of the rolling Carolina Piedmont, has run parallel to that of the country as a whole.
Sales of existing homes here are down 22.5 percent from the first quarter of 2007, according to G. Donald Jud, a University of North Carolina economist who tracks the market for local Realtors, compared with a 21.7 percent drop in home sales nationally. Unemployment in the Greensboro area averaged 5.1 percent in April, versus 5 percent nationwide. The mortgage delinquency rate of 4.04 percent, meanwhile, is nearly identical to the country’s rate, 4.35 percent."
.......http://www.JoeFROCKS.com/ .
NEM XAU HUI
Part of the article:
"Nearly a year after the mortgage meltdown became front-page news, the Schneiders’ travails reflect how the nation’s housing woes have moved beyond subprime borrowers in working-class neighborhoods and into the realm of upper-middle-class homeowners.
Last week, a new report showed that house prices nationwide were off 14.1 percent from a year ago, while the Commerce Department said sales of new homes remained near their lowest levels since 1991.
THE market here isn’t like those of Florida or California, which have followed a boom-and-bust pattern, or of Cleveland, where foreclosures have overwhelmed entire neighborhoods. Instead, what’s playing out here is a kind of paralysis, with wide swaths of the market frozen and only the very top end showing signs of life.
This may hint at what’s in store for other real estate markets around the nation that managed to avoid the excesses of the last decade but still find themselves struggling now. Indeed, the recent economic trajectory of Greensboro, a city of 242,000 smack in the middle of the rolling Carolina Piedmont, has run parallel to that of the country as a whole.
Sales of existing homes here are down 22.5 percent from the first quarter of 2007, according to G. Donald Jud, a University of North Carolina economist who tracks the market for local Realtors, compared with a 21.7 percent drop in home sales nationally. Unemployment in the Greensboro area averaged 5.1 percent in April, versus 5 percent nationwide. The mortgage delinquency rate of 4.04 percent, meanwhile, is nearly identical to the country’s rate, 4.35 percent."
.......http://www.JoeFROCKS.com/ .
NEM XAU HUI
Labels: Gold, Gold Stocks, HUI, NEM, Silver, Silver Stocks, XAU
posted by Joe Ferrazzano at
1:09 PM
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