Looks like things are grinding to a halt in the New Jersey. Housing is still quite expensive and sales are very, very slow.
http://www.northjersey.com/news/business/123389833_Hovnanian_loss_more_than_doubles.html
> Looks like things are grinding to a halt in the New Jersey. Housing is still quite expensive and sales are very, very slow.
Don't worry, any slowing of the economy is "transitory"; I'm sure of this because Bernanke said so yesterday. Of course in the past he's also said:
"We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."
7/1/05 – Interview with CNBC
"House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals."
10/20/05 – Testimony before the Joint Economic Committee
"Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise."
2/15/06 – Hearing before the Committee on Financial Services
"All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable."
5/17/07 - At the Federal Reserve Bank of Chicago’s 43rd Annual Conference on Bank Structure and Competition
Wait, it gets better. Their bondholders are getting nervous and notes due in 2014.
http://www.northjersey.com/realestate/123303643_Hovnanian_buying_land_despite_slump_in_housing.html
I walked past their offices last week while I was visiting my oldest daughter in Red Bank, New Jersey. Nice building.
Wait. There is a housing glut in NJ? Say it ain't so!
Rick
> > Looks like things are grinding to a halt in the New Jersey. Housing is still quite expensive and sales are very, very slow.
>
> Don't worry, any slowing of the economy is "transitory"; I'm sure of this because Bernanke said so yesterday. Of course in the past he's also said:
>
> "We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."
> 7/1/05 – Interview with CNBC
>
> "House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals."
> 10/20/05 – Testimony before the Joint Economic Committee
>
> "Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise."
> 2/15/06 – Hearing before the Committee on Financial Services
>
> "All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable."
> 5/17/07 - At the Federal Reserve Bank of Chicago’s 43rd Annual Conference on Bank Structure and Competition
That is some funny stuff!
Seems like every time that tool box opens his mouth my investment account takes a hit.
> Seems like every time that tool box opens his mouth my investment account takes a hit.
You're making the wrong choices.
When he gave the first Federal Reserve press conference back in April I was shorting the dollar in currency day trading as he was speaking; made $1,400 in two hours.
Is it really any surprise?
What builder can compete with all of the foreclosed homes out there available for a song?