Business

House and Cars.
by Milota Sidorova

When it comes to housing market, one can say it’s far from flourishing times. The number of foreclosure is getting higher. Developing, on the contrary is lowering down its scale. Right now, there’s not enough demand for new and existing houses in the U.S. The pace equals to 7.5 months to sell off all the houses on the market. The number of new projects dropped 3.4 percent to 560,000 this month and it’s the lowest point since 1970’s. People are less willing to buy new houses. Governmental statistics reported the number of applicants for the construction fell 4 percent to 552,000. Predictions from May cited 580,000 and more. The slight difference can b! e seen in applications for single-family houses that decreased only 0.2 percent. Situation is complicated also by the increasing inflation that gained 0.3 percent in October. The core increase about 0.2 was caused by energy, food and car prices rise. The worsening situation in car industry came also as a consequence of two rounds of “Cash for Clunkers” program. Governmental supply emptied the amount of car willing and able customers. The program granted 2009 models that were sold without any difficulties. The program also reduced the number of old, junked cars too old to be sold again. The price increase hit existing used cars waiting in junk stores. New coming models 2010 are having the same trouble – since their ancestors have been sold, the market was fed and logically there’s a problem to get any new place. The prices are jumping up. As for developers – governmental analysis have reported increased will to buy the land all over the count! ry. Here we can see the businessmen count with the crisis as a! tempora ry factor and they are backing up for the future expansion. When will that be – nobody (except of Mr. Bernanke) knows.

related story (sgx15962): http://news.yahoo.com/s/ap/20091118/ap_on_bi_go_ec_fi/us_eco...

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World! .

posted by Blog TechSource @ 11:59 AM