MoneyandMarkets.com: Weiss Research Analyst Mike Larson Warns Investors Housing Market Sinking Faster Than Wall Street Expected
As news spread of the first drop in existing home prices in over 11 years, the speed and severity of the downturn in the housing market surprised many Wall Street analysts, according to Mike Larson, a MoneyandMarkets.com real estate specialist.
JUPITER, FL (PRWEB) September 29, 2006 –- As news spread of the first drop in existing home prices in more than 11 years, the speed and severity of the downturn in the housing market surprised many Wall Street analysts, according to Mike Larson, a MoneyandMarkets.com real estate specialist. Furthermore, Larson cautions investors that this pattern is likely to continue.
Larson, who began warning of a housing market bust in early 2005, points out that:
| | - “In August, existing home sales fell for the fifth consecutive month. The fact that they’re down 13% in the last year has dashed the hopes of observers for a “soft landing” in this industry.
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| | - “We have just witnessed the first year-over-year drop in median home prices in 11 years — and the second worst such decline in 38 years of record-keeping.
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| | - “With the pile-up of new and existing unsold homes now the largest in history, the latest price decline could be just the first of many.”
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Why? Larson explains: “Some analysts believe that the recent decline in mortgage rates will help offset all these negatives. But if the economy slows, unemployment rises, and lending standards tighten, lower rates may not be enough to do the trick.”
Larson is an analyst with Weiss Research. He writes for the company’s Safe Money Report and www.moneyandmarkets.com. He has correctly forecast a number of housing market trends, publishing in June 2005 a report called the “Final Stage of the Real Estate Bubble.” In March 2006, he was also one of the first analysts to forecast the domino effect of the housing slowdown on suppliers, retailers and financial institutions. Last month, condo and co-op prices fell 2.4% year-over-year; while single family prices were down 1.7%. Sales were down 14.5% year over year for condos, and 12.3 percent for single family homes. To view a full list of Larson’s recent real estate reports, visit this link:
http://www.moneyandmarkets.com/results.asp?SearchKeys=larson&SearchArea=3&page=1
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