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FinancialYoung Blog Other BlogsThe Pension Game Has ChangedAugust 08, 2010 Giving to A Greater Cause August 05, 2010 Playstation 3 helps Provide Profit July 29, 2010 Google Gets Greedy July 28, 2010 Hayward Out at BP July 27, 2010 Amongst All the Losers, We Have a Winner October 08, 2009 Newborns Be Living Longer October 07, 2009 George W. Bush: A President's Pension October 06, 2009 The $125 Million Dollar Mess October 05, 2009 Clinton Speaking Fee; Out of This World October 02, 2009 The Beginning of the End for the Rating Agencies? October 01, 2009 Texting While Driving September 30, 2009 This Day One Year Ago. A 777 Point Drop, Ouch! September 29, 2009 Go Where the Demand is, Right? 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Here Are Some Tips February 04, 2009 Super Day for GE Thanks to the Super Bowl February 02, 2009 We Might Need More Than Another Stimulus Package January 27, 2009 Are Credit Cards Next to Fall? January 15, 2009 Welcome November 28, 2008 test July 01, 2008  Home Prices Still Falling?Okay, so another talking head is predicting that housing prices across the country are still coming down another 25%. Well, who said it this time and why should we listen? Meredith Whitney, one of NY Post’s 50 Most Powerful Women in NYC, was the latest expert to publically speak on the state of the housing market and she believes it still has a way to fall. Now onto the question of why should we listen to her? Whitney, has a very impressive track record of spotting trends and calling them before they happen. The last time she called her shot was in October of 2007 when she went on record against much negative fanfare to explain how the financial sector, Citi Group especially, was going to see catastrophic times. As the financial markets began to crumble in 2008 we began to realize that Whitney was more than right, she was spot on. Her logic for a continued downward spiral in housing prices: “No lender underwrote loans with 10% unemployment on the horizon. I think there is no doubt that home prices will go down dramatically from here, it’s just a question of when.” Whitney goes on to discuss other reasons to back her hypothesis and the state of the housing market; click here for the full article http://www.cnbc.com/id/32773345. So what’s the point? Whitney could be completely wrong, she could be completely right or partially correct. Even if she is only half right the housing market could see another 12.5% decline before it gets better. If you’re not a homeowner yet, the question you need to ask yourself is, do you believe in Whitney’s theory? If you do, then buying a home might be further away then you think. If you don’t believe her, I would caution you to carefully consider all options before you sign on the line which is dotted (such as, how long will you be there, what area of the country are you buying in, etc.). If Meredith Whitney is correct it wouldn’t be the first time, and it’s my humble opinion that it won’t be the last either. |
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