A summary of housing-bust red flags
Tonight we'd like to recap all of the reasons why the housing bubble appears to be bursting...
- Toll Brothers has said their orders are down 33%
- 10 Las Vegas Projects put on hold
- The University of Michigan’s Consumer Confidence Index for April was 79, compared to 87.4 in March, the lowest since Hurricane Katrina.
- Housing starts in April were down 7.4% at an annual rate of 1.85 million, the third consecutive monthly decline and the slowest since November 2004.
- According to the Washington Post a greater proportion of mortgage financers tapped their home equity for cash in the first quarter 2006 than any other quarter in 15 years. More than 50% of these applicants borrowed at higher rates.
- Ameriquest, is closing 229 branches and laying off 3,500 employees.
- According to the Wall Street Journal, late payments on mortgages are rising. Delinquencies are sharply higher on loans made last year.
- 29% of 2005 purchasers now have no equity in the homes.
- America’s new jobs figure for March was 138,000 - economists had estimated 200,000. 138,000 is the lowest since October last year and it followed three months of downward revisions.
Please write me and let me know if we should add any to this list.
