Today's housing news courtesy of Reuters is that analysts are assuming that the housing slump will last for another year and a half. This, of course, may or may not be true. The assumption is for the purpose of evaluating debt ratings, so perhaps a pessimistic attitude is necessary. However, the basis for the assumption remains the same: excess inventory and slowing (or reversing, in some areas) appreciation.
The quote of the day from this particular article: "'We're operating under the assumption that another shoe could drop (in the U.S. housing market) and become more severe,' Fielding said."
Wow...there's a lot of assuming going on there. My father warned me about assumptions. What do you think. (By the way, feel free to email me if you don't know what my father meant...LOL).
The article, which is definitely worth a read: http://www.reuters.com/article/bondsNews/idUSN2932898420070529
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My dad said the same thing about assumptions. How much longer the slump will last is an open question, but there's no question it's hitting the industry hard. Thanks for the commentary.
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