Wednesday, December 28, 2011

Again it will stop when it stops...

It's all about affordability, jobs, and confidence. As I've posted a year or so ago, when housing bottoms people will buy and the boom is on.

Unfortunately, every boom leads to a bust and each bust will be worse than last because the system is rotten and no one was punished this time. As soon as they can the gang will speculate and lie the economy into bust again.

At least we don't live in Spain. Their housing starts fell 44% last month so the European economy is tanking and money is flowing here. 2012 is going to be a bitch for these guys.

“Data through October 2011, released today by S&P Indices for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed decreases of 1.1% and 1.2% for the 10- and 20-City Composites in October vs. September. Nineteen of the 20 cities covered by the indices also saw home prices decrease over the month. The 10- and 20-City Composites posted annual returns of -3.0% and -3.4% versus October 2010, respectively. Fourteen of the 20 MSAs and both Composites saw improved annual returns compared to September’s data. Miami saw no change in annual returns in October; while Atlanta, Detroit, Las Vegas, Los Angeles and Minneapolis saw their annual rates worsen. At -11.7% Atlanta posted the lowest annual return. Detroit and Washington DC were the only two cities to post positive annual returns of +2.5% and +1.3%, respectively.

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