HOME HOME ON THE RANGE

You see the housing recovery? You see the LIMP stats "outside" shaded Recession area?

Chew on this: Apps for new home purchase declined 38% over last year (was already putrid),

people poking around new home developments and recent conf board surveys showed near historic lows of pessimism. The survey also asks Americans if they "expect to buy a home" there wasn't much response.....they should have asked again.

ALL this is ocurring with 30 yr rates below 5% !! AYKM!!! To get your ass in a new homoe you might have to actually qualify and would need some kind of DOWN PAYMENT...imagine that.

With the rate of home ownership still above historic norms....expect pressure in the housing industry to continue.....and if you add the under and unemployed.....a BOAT LOAD OF PEEPS have been taking OUT of the potential buyer stream.

And you know.....who is afraid that rates will jump up quickly? WHO is afraid prices will begin to rise all of a sudden? what does this mentality sound like? DEFLATION SPEAK!

I have a friend I spoke with yesterday, young man, doing well with Fidelity, one child 5 another on way, he's in townhome, has been eyeing a development for a step up.

20 homes mostly vacant, many in banks hands short or foreclosed.....they did average around $520,000.....after several MARK DOWNS....maybe $450K now......but he's not so jiggy just yet....as he expects prices to fall some more.....he feels he has got time...plenty of time.....prices will fall some more....UGLY LOOP....DEFLATION.

D