Stocks, S & P 500 Posts Largest Loss Since February, 2009
Economic fears are cited as the reason for today’s landslide loss in US Stock Markets. The Standard & Poor’s 500 Index saw its biggest loss since February 2009 prompting many to question what affect this will have on the United States and World Economies as a whole and also how the housing market will be affected. At the end of trading for Thursday August 4th, 2011 only three stocks posted gains out of the 500 stocks monitored by the S & P showing just how widespread the loss is. Fears are rising that the equity driven bull-market of this year’s spring has faltered and perhaps come to an end.
Housing Stocks Down
Construction Services Companies such as DR Horton (DHI) saw stock prices decline -6.93% in today’s trading while others in the industry fared little if at all better. With questions about how much longer home mortgage interest rates can stay so low many industry insiders including Builders and some real estate brokers fear a double-dip in terms of home values and the sustainability of the housing recovery. For many Americans the real problem is increasing cost-of-living and long unemployment lines. After all, what good is a great deal on a house if you don’t have an income? Thus, many of the excellent values presented by short sales, REO (Real Estate Owned) Bank Foreclosures and other distressed sales don’t find buyers quickly because more buyers are finding it difficult to qualify for a mortgage.
Housing Market Portland
The Portland Housing Market is experiencing a mix of conditions with certain areas being in the short-term comparatively stable (such as Lake Oswego, Oregon) while other outlying areas such as Damascus, Oregon are seeing increased time on market and a decreasing pool of well-qualified buyers. What this means in the long-run may only become clear after the fact.