In the height of the bubble, there were many many stories about how great it is here. The Trib and Suntimes RE sections were exploding with get rich stories and hot neighborhoods. Now the sections are thinned out. On the cover is an expose on the newest energy efficient light bulb that will save you 3 cents a month. Like that will save you from your lair-loan ARM explosion! But inside are still allot of the same over-priced houses and condos that have not sold in a year.
NO IS TALKING ABOUT THE BUST THAT IS OCCURRING ALL AROUND US!
No one but this guy. But I have to read about it in a New York publication.
For shame.
Spending May Take a Hit as U.S. Home Prices Decline (Update2)
By Bob Willis
April 27 (Bloomberg) -- Carol Francis says her customers are less likely to make big furniture purchases these days than they were at the height of the housing boom two years ago.
``The housing market right now is affecting everybody's spending,'' said Francis, a design consultant at Thomasville Home Furnishings in Woodbridge, Virginia, 25 miles south of Washington. Before, ``I had people who would buy two and three bedrooms of furniture. Now many come in and just buy one piece at a time.''
With home prices in danger of falling this year for the first time in at least four decades, Americans are turning wary about borrowing against their houses to pay for vacations, education or remodeling projects. In a reversal of the ``wealth effect,'' people who once viewed soaring home values as a rationalization for higher spending appear to be pulling back.
``We're in a housing recession; it's not over and it's going to spread to other parts of the economy, mainly consumer spending,'' said Paul Kasriel, director of economic research at Northern Trust Securities in Chicago. ``House prices are going to continue to fall, and that's going to play havoc with consumers because it means the home ATM is now draining, it's no longer filling.''
6 comments:
I heard that Chicago's housing prices could fall as much as 22% over the next year or so!!!!
once the bullshit loans dry up the market will correct. you can only sell for what another is willing and ABLE to pay !
My view is that Chicago is about a year behind the other, more heated, bubble markets. But rest assured Chicago is NOT an island in this national bubble.
Hello CREB,
welcome aboard! I linked you on my site.
no ads pls
Look again at local newspaper coverage...you're missing alot.
google "chicago subprime sun-times"
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