Weiss Research Analyst Mike Larson Warns Investors
Housing Market Sinking Faster Than Wall Street Expected
JUPITER, Fla., Sept. 26 /PRNewswire/ — 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.
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.
* “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.
* “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.”
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 http://legacy.weissinc.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.
SOURCE Weiss Research
