Hi All,
Here is a post from
Barbara Rockefeller Currency Blog to the state of the US Property Market
Worth the 5 minutes reading time
Also taking this stance is IMF Deputy Director Lipsky, who says “there is still no obvious reason to expect the global economy to go into recession,” according to Market News. “Lipsky told Financial Times Deutschland that housing prices might now be experiencing undershooting and that risk aversion may have become too pronounced. Industrialized economies will be in a very ‘sluggish or nearly stagnant phase’ in the second half of this year, but a ‘gradual recovery’ will proceed in 2009, he said. ‘This, however, will not be able to dispel quickly the financial tensions,’ he added. Lipsky suggested that asset prices had dropped more than fundamentals warranted: ‘After years of overshooting of asset prices and of too-low risk perception, we may now be seeing a kind of overshooting of the prices and a too-strong risk aversion.’ “Still, he said, ‘We are operating on the assumption that next year we will see an end of the decline of asset prices.’ In particular, the US housing market ‘will bottom out in the course of the first half of 2009,’ he predicted. ‘The considerable decline of US housing prices is slowly resulting in the indices for the affordability of housing returning to levels that are reasonably normal.’"
Note that this match Jim Cramer’s forecast of the house price bottom in June 2009.
Read the Full story click here
US House Prices Bottom June 2009