Existing home sales stabilize while market is still weak – a temporary bottom in residential real estate?
Peter Oberois
Aug. 26, 2007

Existing home sales data points to continuing weakness but some stabilization is in sight. Many analysts are looking at the light at the end of the tunnel.

Residential real estate markets may have bottomed. While the sub prime mortgage loan fiasco will continue to melt the financial markets for a long time, a temporary lull will dominate in the short run for the residential mortgage market.

The new homes and existing homes will get back in demand as lower interest rates work its own magic. The Federal Reserve’s action is bullish for lumber futures. The residential and commercial mortgage rates are coming down slowly. That in turn is creating some demand for the properties.

Sales of new homes in the U.S. increased and durable goods orders climbed more than economists estimated – Asian stocks rally on the news
Karen Zuba
The Asian stock markets are rallying on the upbeat US economic news. The question is how long will the good news syndrome survive?
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Existing home sales stabilize while market is still weak – a temporary bottom in residential real estate?
Peter Oberois
Existing home sales data points to continuing weakness but some stabilization is in sight. Many analysts are looking at the light at the end of the tunnel.
READ MORE>>

The next leg of global financial meltdown about to start – London, NY, Madrid, Paris real estate prices ready to fall
Peter Oberois
The Federal Reserve and many other central banks have taken appropriate measures to halt the global financial meltdown that started a month back. However, the calm in the financial markets can be very temporary...
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Manufacturing and service industries in Europe show signs of recession – a global slowdown forced by credit problems and financial meltdown
Fred Day
Growth in Europe's manufacturing and service industries slowed in August as the pace of orders cooled, indicating turmoil in world credit markets may be starting to weigh on the economy.
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Bank of America planning to buy Countrywide – the start of second leg of the financial meltdown
Peter Oberois
The banking and mortgage crisis is deepening very fast. Bank of America’s (BoA) decision to contribute $2 Billion is significant. They plan to buy out the countrywide mortgage.
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How close is the US economy to a major recession?
Sam Adelton
Recession will not happen till these low paying jobs disappear. That may take some time but when it comes, it will not be a recession – it will be a deflation driven depression in the economy.
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Tip of the iceberg in corporate mismanagement - corrupt Dell top executives sought accounting adjustments to reach quarterly performance goals
Peter Khanna
This is what went on in corporate America in the name of guidance and quarterly performance improvement. Dell is just the start of the scandal. Almost all companies will start restating earnings.
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The credit market defies Fed action – Federal Reserve in deep trouble for the first time – a typical stagflation sliding into deflation
Peter Oberois
The Federal Reserve’s half a point reduction in discount rate is received by the credit market poorly. The liquidity crunch will not go away and the long term rates shot up for the fear of inflation. Gold jumped and then started sliding.
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