Bernanke Sees the Housing Market Bottoming

2010/04/03 |128 views|0

Bernanke Sees the Housing Market Bottoming

Ben Bernanke gave his testimony to Congress and stated that he sees economic recovery by the end of the year. The reason he sees a recovery from the recession is the stabilization of the United States housing market. We will not know when a bottom has been put in home prices until the bottom has already come and gone. It is quite possible that the bottom occurred in the month of March.

The issue with the bottom in home prices occurring in March is the fact that the unemployment rate continues to rise. One thing that Americans need to stay in their homes and possibly buy new homes is jobs. If the number of jobs is decreasing each and every day then how can we see a shrinkage in housing inventory? Obviously the government can buy up some of the inventory but will this really help home prices?

The only way that home prices will bottom is if we see supply equal demand and that is definitely not happening in most markets.

Related Coverage

Markets Breakdown after Bernanke

Both the Asian and European markets rallied along with their respective currencies against the dollar as Federal Reserve Chairman Ben Bernanke was expected to speak to the Senate Banking Committee on Tuesday. Prior to his semi-annual monetary policy testimony, the Euro reached a one-month high against the greenback as the markets expected European Central Banks to hike rates before the Fed.

A Housing Bottom—Are We Seeing One?

There was finally some good news on Tuesday after the latest reading from the S&P/Case-Shiller Home Price Index of 20 major metropolitan areas in the United States showed a bounce from the recent lows.

The Bottom For the UK Housing Market?

Is there really stability in house prices or is it actually just the higher level houses that are supporting the market? It was only a matter of time before house prices eventually would be supported by quantitative easing and lower interest rates. The Bank of England have not made the same mistake as last time and were aggressive in their monetary policy which has clearly had an impact on the confidence levels of the homeowner.

Are The Markets On Pause for Bernanke?

Since late August 2010, the major stock market indexes have rallied sharply higher. The catalyst for the rally was the announcement of QE-2(quantitative easing) by the Ben Bernanke in Jackson Hole, Wyoming. The U.S. Dollar Index has been declining sharply ever since that announcement and the stock markets have inflated higher. Now the Bernank will start holding press conferences after their FOMC announcements.

In fact, there are many markets that are seeing historical highs in new homes supply. New home construction has greatly decreased over the last year, but there are still home that were built during this period that are going unsold. This does not even begin to address all the homes that are getting foreclosed.

Overall, it is good that the Fed Chairman sees a stabilization in the housing market, but is this reality? There are many factors that make us think otherwise.

Article Source: http://ezinemark.com/bernanke-sees-the-housing-market-bottoming-4ecc89bb4f8.html

Author Box

Jesse R Wojdylo has 1 articles online

Subprime Blogger offers daily mortgage rates news and what you need to know about the housing industry. Mortgage rate trends remain down and now is the time to educate yourself on mortgage rates and where they are headed.

SHARE: Del.icio.us Digg Mixx Yahoo! Facebook Linkedln

Add New Comment

Bernanke Sees the Housing Market Bottoming

marketing put in bay seesaw sees candy united states postal service sees candies end of the world housing bubble united states map recovery console

Bottom Feeders

Publisher: Roberto Mazzoni

The real estate market has hit bottom in some areas and as evidenced by the fact that occasionally bank owned properties get sold for more than they were listed at. This creates a new scenario per the savvy real estate investor who cannot be content to operate only in his own back yard or that needs a more effective tool to do that anyway.

Bernanke Plan is Punishing The Retirees

Publisher: Nicholas Santiago

Quantitative easing is simply a dilution of the U.S. Dollar. The Federal Reserve Bank will simply buy $600 billion in U.S. Treasuries over the next six months. This creates currency reserves and causes inflation. Therefore, gasoline, oil, copper, sugar, and most every other commodity that generally trades in U.S. Dollars will increase in price.

Ben Bernanke: Regulators Reviewing Foreclosure Practices

Publisher: Jolie Crussel

Fed chairman Ben Bernanke said Monday that federal bank regulators would be examining the legalities of mortgage companies in terms of foreclosure procedures.

How to spot the bottom of the housing market

Publisher: Kate Faulkner

Lots of people are desperate to know when the bottom of the 'the market' comes. Many people will give you their view, but the truth is that no-one can predict the bottom of any market until after it has already happened! It's also a bit pointless waiting for the bottom of the market to buy. There are two reasons for this. Firstly you may miss out buying the home that you want and secondly, why not just offer a price that takes into account any likely further falls? Many buyers who are trading up benefit in a falling market as they can afford properties that would otherwise be out of .

Houses For Sale In Alabama - Is The Market Bottom Near

Publisher: Chuckmagee71

Is there ever a perfect time to buy houses for sale in Alabama? Sure, when the market is at rock bottom. But how do you know when that is? That's where the gamble comes in.

Houses for Sale in Alabama – Is The Market Bottom Near

Publisher: Chuck Magee

Is there ever a perfect time to buy houses for sale in Alabama? Sure, when the market is at rock bottom. But how do you know when that is? That's where the gamble comes in.

Waiting For the Housing Market to Hit Bottom?

Publisher: Coleen Bennett

Everyone is talking about whether the housing market has hit bottom. Recently several people have claimed that it has reached the bottom or is near the bottom. Is it true? Is it finally time to move?

Financial Stocks Close to a Bottom

Publisher: Brian T Mikes

Financial industry insiders invested more than $91 million in their own stock according to Thompson. Traditionally, when you see insiders buying a stock it's a very positive sign. Company insiders clearly have a good grasp on their company and industry. When they buy, positive news is on the horizon. Now, one insider buying stock is an interesting data point. A whole heard of insiders buying stock is a huge signal.

Greenspan's Black Monday vs Bernanke's Shock & Awe Tuesday - Who's Hand Will Rein Victorious?

Publisher: Chris Swain

Who has more influence on the stock market, the former Fed Chairman Alan Greenspan or current Fed Chief Ben Bernanke? The market has spoken, now you can decide for yourself.