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U.S. Housing Bubble

Tue, Nov 28 2006, 09:58 GMT
by Marina Schiaffino

FXstreet.com

U.S. Housing Bubble

Wikipedia defines the Housing Bubble as: "A type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid speculative increases in the valuations of real property such as housing until they reach unsustainable levels relative to incomes and other economic elements, followed by decreases that can result in many owners holding negative equity."

In fact, owning a house is becoming impossible since the last 10 years. Houses everyday become more and more expensive creating a market bubble that, sooner or later, will explode. FX markets will surely react broadly after this explosion, but when will it come?

• Where are currencies going now? Get the picture on FXstreet.com Rates & Charts
• Read The Coming Collapse in Housing at the FXstreet.com forum.

In-Depth Analysis

• The Coming Collapse in Housing by Online Trading Academy
• Daily Global Commentary - Are Households Saving Their Pump Savings? by Northern Trust
• Global Scenarios: Trends and risks - While the US shows, Europe slows by Danske Bank A/S
• Market Strategy - US housing on the brink of a collapse by ICICI Bank
• Friday Notes - US housing slump in perspective: Downward pressures persist by HVB Group
• Weekly Focus - USA: Up or down in the housing market? by Danske Bank A/S
  
• The Futures Commentary - Housing… We're back! by J.A. Schwarz

Related News

• Greenspan: worst is over for housing (AFX News)
• European govt bonds come off highs on firmer US home sales data (AFX News)
• U.S. Existing Home Sales, up for first time in eight months (FXstreet.com)
• US Oct existing home sales up 0.5 pct to 6.24 mln units (AFX News)
• U.S. stocks cut losses after home sales report (Reuters)
• Ahead of the Bell: Home Builders (AFX News)
  
• House prices in England, Wales up 1.2 pct in Oct vs Sept, up 7.0 pct yr-on-yr (AFX News)
• OECD says housing market slowdown may have only limited economic impact (AFX News)
• UK mortgage approvals rise to 74,997 in Oct, highest since June (AFX News)
  
• Starter homes elude Californians (AFX News)
• Home sales fall in 38 states (AFX News)
• G20 MEETING: US housing slump risk to world economy (AFX News)
  

Analysts Comments

• Tony Juste, FX Advisor at FXstreet.com
  "The housing market is on a bubble and it will sooner or later burst. Although this may sound familiar, the reality is  that neither prices nor volume of units sold are decreasing at a pace that would anticipate such scenario, and that both credit houses and construction companies are 'the new gold' for placing that money one has destined for investments. However, if one had to speak from a chartist point of view, the trend looks too old and too exhausted to be sustained for a much longer period and a correction or even a reversal is likely." - FXstreet.com

Published on  Wed, Nov 29 2006, 12:15 GMT