Sun
Sep 30 2007
06:52 am
Housing bust ripples through economy
By: R. Neal

The effects of the housing bust are rippling through the economy according to this Newsweek report:

The collateral damage is spreading. Because home sales and moves stimulate purchases of appliances, electronics and furniture, the giant chains that catered to house flippers and renovators have reported recessionlike results. In the second quarter, same-store sales were down 5.2 percent at Home Depot and 4.3 percent at Sears.

[..]

The National Marine Manufacturers Association said it expects pleasure-boat sales, down 6 percent in 2006, to fall 10 percent more in 2007, largely due to the housing woes.

[..]

In July, auto sales were down 12 percent from the year before. When CNW Research asked consumers who were putting off plans to buy new cars why they were doing so, 17.6 percent cited housing issues like falling home equity or rising mortgage payments.

Here's more disturbing info from the article:

• Nearly 180,000 homes fell into foreclosure in July, up 93 percent from a year ago.

• Sales of new single-family homes were off 22.3 percent in June from a year earlier.

• Sales of existing homes were off 9 percent in July.

• There is 9.6 months worth of housing inventory for sale, more than double the 2005 level.

• A national housing price index fell 3.2 percent between June 2006 and June 2007, "the largest sustained decline in year-over-year prices since 1991" according to a Yale economist.

• Employment in housing-related industries has declined 119,400 since August 2006.

Topics:
bizgrrl's picture

Employment in

Submitted by bizgrrl on Sun, 2007/09/30 - 7:36am.

Employment in housing-related industries has declined 119,400 since August 2006.

Based on conversations with acquaintenances in Florida, a lot of these job losses are in Florida. Don't know about Knox County, but I do think new home building is slowing down in Blount County.

Oh, do they count illegal immigrants in these job losses?

Andy Axel's picture

Oh, do they count illegal

Submitted by Andy Axel on Sun, 2007/09/30 - 10:47am.

Oh, do they count illegal immigrants in these job losses?

Considering that they're "undocumented?" No way. BLS statistics can't account for them. No FICA, no SSN, no official job status.

____________________________

I'm a guy in a Reagan mask -- and I'm running for President!

Sven's picture

CEPR put out an interesting

Submitted by Sven on Sun, 2007/09/30 - 10:38am.

CEPR put out an interesting report on the relationship between increased defense spending and the housing sector:

Annual housing starts are projected to be 17,900 lower in the high military spending scenario [+1% of GDP, or $135 billion annually] after five years, 46,200 lower after ten years, and 38,500 lower after twenty years. The cumulative projected drop in housing starts over the twenty year period is 530,000. The drop in annual existing home sales is projected to be 128,400 after five years, 247,900 after ten years and 286,500 after twenty years.

Bizzy's picture

Did you know...

Submitted by Bizzy on Sun, 2007/09/30 - 2:59pm.

The American homeowner is the number one employer of illegal immigrants?

bizgrrl's picture

Did you know... The American

Submitted by bizgrrl on Sun, 2007/09/30 - 5:58pm.

Did you know...
The American homeowner is the number one employer of illegal immigrants?

No. How/why is that?

Andy Axel's picture

I think he means that

Submitted by Andy Axel on Sun, 2007/09/30 - 6:06pm.

I think he means that contractors are the #1 employer of illegals.

____________________________

I'm a guy in a Reagan mask -- and I'm running for President!

Bizzy's picture

No, the homeowner

Submitted by Bizzy on Sun, 2007/09/30 - 6:47pm.

...can't remember where I read the statistic but the reference was to the homeowner who hires illegal immigrants for general and domestic labor. Maybe someone better at googling than me could find the statistic.

SammySkull's picture

Maybe someone better at

Submitted by SammySkull on Sun, 2007/09/30 - 7:55pm.

Maybe someone better at googling than me could find the statistic.

Seems to me the person who claims something is fact is the one who should do the pertinent googling.

Bizzy's picture

Pertinent Googling. Sounds

Submitted by Bizzy on Sun, 2007/09/30 - 8:41pm.

Pertinent Googling.

Sounds important.

bizgrrl's picture

Ok, I'll go with option

Submitted by bizgrrl on Mon, 2007/10/01 - 7:02am.

Ok, I'll go with option number 1.

contractors are the #1 employer of illegals.

Bizzy's picture

Ok

Submitted by Bizzy on Mon, 2007/10/01 - 10:24am.

Since I can't remember where I read this statistic I suppose that makes it untrue?

I remember the report because I was surprised to hear the statistic. I would assume contractors as well.

bizgrrl's picture

Nah, it doesn't make it

Submitted by bizgrrl on Mon, 2007/10/01 - 10:36am.

Nah, it doesn't make it untrue. It just supports a movement to statements that are backed up. In the Internets, unless it's personal experience, what we remember is sort of like living through the 60s. Did it really happen or was it just a good ride (bad trip)?

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