Leading Bubble Blog HousingPanic Declares: The US Housing Bubble Has Officially Burst

Leading Bubble Blog HousingPanic Declares: The US Housing Bubble Has Officially Burst

http://HousingPanic.Blogspot.com, with overwhelming evidence to support, has declared the US Housing Bubble a classic asset bubble, which officially burst on December 28, 2005

Phoenix, Arizona (PRWEB) January 5, 2006

Leading bubble blog HousingPanic declared the US Housing Bubble to have officially burst on December 28, 2005.

"The HousingPanic blog has been documenting and discussing the theoretical US housing bubble, including discussions of previous manias, panics and crashes, reporting of statistical housing data, and the review of factors contributing to a potential bubble," said Keith Brand, publisher of http://HousingPanic.Blogspot.com.

"However, due to an overwhelming amount of evidence, HousingPanic can now officially declare that the theoretical US housing bubble is indeed real, it has satisfied the components of a classic bubble set forth by Merril Lynch economist David Rosenberg, and it has now officially burst."

Mr. Rosenberg's six characteristics of any kind of asset bubble include:

1) Overheated prices

2) Over-ownership

3) Too much debt

4) Speculation

5) Complacency

6) Denial

"The US Housing Bubble has now satisfied all six of Mr. Rosenberg's bubble components" said Mr. Brand. "We are especially interested in the continued denials from self-interested parties, including the National Association of Realtors, mortgage bankers, appraisers and leading homebuilders".

The final bubble burst evidence leading to HousingPanic's declaration included:

The Yield Curve has inverted
US new home sales dropped 11.3% in November (including 21% in the West)
The US median new home price dropped 4.1% in November
Existing US homes sales dropped 1.7% in November
Thirty-six percent of recently purchased homes were second homes or speculative purchases
For-sale inventories are up 15% in the past year, to a 17-year high
23% of loans and 30% of loaned value in interest-only and exotic mortgages
The continued denials from the National Association of Realtors that there is a housing bubble

Weekly headlines from http://HousingPanic.Blogspot.com included:

Oh, denial... "Experts" say "no bubble here"
Will the bursting of the housing bubble cause the illegal Mexican immigrants to go home?
Flash: Treasury yield curve inverts
Greenspan's paper in 1966 on credit, bubbles and gold
The six characteristics of bubbles (check, check, check, check, check, check)
Phoenix we have a problem - listing explosion update
Flash: New Home Sales Plummet in November - Down 11.3%, Median Price Falls 4.1% from October
Condo flippers may be in too deep
Let the desperation begin - Centex offering $25,000 incentive
Housing bubble deflating, says builders survey
Could renting be smarter?
Real estate - is it time to cash out?
Built on the boom: Realty feels a chill - Days of torrid buying, prices giving way to 'for sale' cycle

The http://HousingPanic.Blogspot.com blog is to simply inform, so that its readers may make their most intelligent housing choices. With over 100,000 page views since launch, HousingPanic has become a key central point for a panicked public to read, understand, comment and react.

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Contact Information

Keith Brand
Housing Panic
http://housingpanic.blogspot.com
6027508055

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