U.S. Housing Real Estate Market House Prices Trend Forecast 2013 ...

By: Nadeem_Walayat
Following the peak of the over leveraged US housing market bubble late 2006, the real estate market literally crashed during 2007 triggering the financial crisis that has acted to subsequently feed a multi-year bear market as a consequence of the subprime mortgage debacle that was magnified globally via toxic CDO packages that literally risked the bankruptcy of the whole global financial system starting in June 2007 when Bear Sterns bailed out one of its hedge funds, within a year Bear Sterns would effectively go bust as JPM picked it up for about 5% of its peak value that acted as a prelude to what was yet to come during 2008 for the likes of Lehman?s that prompted tax payer bailouts right across the globe to prevent financial armageddon as the too big to fail banks only slowly revealed the extent to their exposure to the toxic mortgage backed securities in what amounted to the greatest fraud in history as investors had been duped into buying junk that the credit rating agencies typically rated as Triple A for a fee

Since which time the bear market in US housing has continued to act as a drag on the US economy, holding it back from recovery, in response to which the US government and central bank have sought to escalate their response in an attempt at engineering an economic bounce so as to induce an sustainable economic recovery of which the QE-4-Ever of Sept 2012 is just one recent response towards which amounts to printing an estimated $85 billion a month to inflate the US economy which is predominately aimed at the US housing market and secondary drivers.

However, one of the best times to invest in an asset class is when it is at it?s most hated, i.e. after a crash and a prolonged bear market when most investors have been badly burnt by losses, the US housing market and many other global housing markets such as the UK fit the bill for the potential for being at such an opportune moment during 2012 due to similar money printing asset price inflating government policies as I have been flagging for most of 2012 for expectations of the UK and US specifically to have entered into embryonic bull markets that this analysis seeks to expand into a detailed multi-year trend forecast.

FULL STORY ? The Market Oracle

This entry was posted on Monday, January 14th, 2013 at 6:00 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Source: http://www.ny-agent.com/?p=4858

buffett rule lollapalooza lineup joss whedon ronnie montrose melissa gilbert dancing with the stars dandelion wine cough