There are more bad news on the housing market in the US. Inman News reported on Wednesday, February 27, 2008 that the inventory of single-family homes reached the highest level since October of 1981.
The for-sale inventory of new single-family homes bloated to its highest level in 27 years in January, as sales of new single-family homes slipped to the lowest adjusted annual rate in about 13 years, the U.S. Census Bureau and the Department of Housing and Urban Development announced today.
The supply of new, single-family for-sale homes reached 9.9 months in January, which means it would take nearly 10 months to sell all of those homes at the January sales pace. It was the largest supply since October 1981, when there was an estimated 10.3 months' supply of single-family new homes for sale.
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One recent report said foreclosure filings soared by 57 per cent in January compared with the same month a year ago. Another report said home prices in 20 key markets had dropped by 9.1 per cent in 2007.
Most experts are projecting that house prices in the US will continue to adjust to supply-demand until a support level is reached. This is not likely to happen soon. Meanwhile, Canadian housing experts are expressing concerns that if US is already in a recession, Canada's economic growth and buoyant housing market will be affected.
The current housing boom in Canada is the strongest and longest as reported by a recent RE/MAX Housing Report.
Some industry experts are optimistic that the housing market in Canada will not be seriously impacted by the US recession. You are welcome to post your thoughts and comments.
I thought here it is cyclical, and if this is true, there is little reason to think that it is any different in Canada. I am not sure how American housing market can affect Canadian, but Canadian will definitely affect Canadian.
No hike can go forever. If you say that the market is booming, that means that values accelerate at higher rated than during other years. So, you are simply getting closer to the ceiling, And the minute you hit it, you got what we have now.