Housing sales soar during February

[Deja Q]

http://www.msnbc.msn.com/id/7284889/

Wasn't the M$M worried about GM's economic state being a concern for the housing industry as well, just a week or so ago?

[rfranklin]

1. I have some tulip bulbs for you...

"bubbles, great big bubbles...." (with apologies to Don Ho.)

[Pachamama]

2. They may have soared in February & even March, but watch it slow now that

mortgage rates will be going back up....My husband and I had seriously been considering selling our home and buying another that was a fixer, but that was last week...now that it turns out our current interest rate (a jumbo loan fixed at 6% is as good as it gets) we are asking ourselves why change now....

The prices around my area have been going nuts....it would still be a great time for us to sell, but the demand for houses (especially over $1MM) will decline as people's buying power declines w/ increasing interest rates.

And we all know that the economy is being artificially propped up by home sales and the cash that's coming out of people's homes that people are using their equity lines of credit like an ATM machine..

[Yavin4]

3. The NASDAQ Hit 5000 in March of 2000

Speculation always hits a peak right before a crash. In fact, soaring home sales is a strong indication of a coming crash as people are going all out to get the low interest rates. My guess is that some people are throwing caution to the wind in order to get a house now.

[Pachamama]

5. So will April/May 2005 be deja vu all over again for those who remember?

Me thinks so....I have been saying for over a year now that things were going to get real bad by Summer/Fall of 2005....I think that my statement is about to be proven correct....

This time, its going to be worse....more people will be affected and harder....

[12345]

6. I've been beginning to feel that way myself...

I'm trying to convince my husband so that we can be somewhat proactive. What are your indicators?

I've got soaring gas prices (the possibility of Peak Oil 2005-2008,)national and personal debt levels out of control, the falling dollar, rising interest rates, the international real estate bubble, the potential for inflation given the falling dollar and rising energy prices...

What am I missing?

[Pachamama]

7. You got all the indicators I've got...the only thing missing is maybe a

"catalyst" event (ie. sudden unpredicted event such as a terrorist attack or natural disaster) or even something such as Oil starting to be traded in the Euro....

In any event, I have this sickening feeling that things are going to get very bleak....

[CrispyQ]

4. I'm at work right now, but this evening I'll look for the issue,

of Business Week where I read that many house purchases are second & third homes (for the very rich). If I recall correctly, it was close to 30%. So if that is the case, these figures are mis-leading.