Economic uncertainty makes prospective buyers nervous

TRD New York /
Aug.August 22, 2011 08:59 AM

As the U.S. economy shows signs of a double-dip, uncertainty on Wall Street is rattling would-be property buyers, Karl Case, co-founder of the S&P/Case-Shiller home-price index, told Bloomberg News.

National homebuyer cancellations rose about 10 percent in the past two months from a year earlier, as buyers had trouble getting appraisals that matched the loan amount, and faced stringent lending standards.

“There’s a dramatic effect on an economy when a major sector is flat out,” Case said. “If housing takes another leg down, it’s an accelerator. It’s going to make a recession happen faster and deeper.”

The Standard & Poor’s 500 Index has fallen for four straight weeks, Bloomberg said, and a lot of people have seen their down payments disappear in the stock market.

“It served as a reinforcement to the hunker-down mentality that a lot of homebuyers already had,” said Keith Gumbinger, vice president of loan data firm HSH Associates. [Bloomberg]


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Stripe CEO Patrick Collison (JD Lasica via Wikipedia; Unsplash)

Firms dangle big bucks to lure employees out of big cities

Firms dangle big bucks to lure employees out of big cities
Hong Kong Stock Exchange (Getty)

Chinese proptech firm Ming Yuan Cloud goes public

Chinese proptech firm Ming Yuan Cloud goes public
WIll Smith as the Fresh Prince and the Los Angeles mansion (Getty, Airbnb)

Stay at the “Fresh Prince of Bel-Air” mansion for $30/night

Stay at the “Fresh Prince of Bel-Air” mansion for $30/night
A construction worker at One Vanderbilt in August (Getty)

City reports decline in construction-related injuries, deaths

City reports decline in construction-related injuries, deaths
Bill de Blasio and Andrew Cuomo, with (from left) Steven Roth, Jeff Blau, Rob Speyer, Douglas Durst, Ziel Feldman and Steven Schwarzman (Getty)

Real estate execs to city, state: Let us help with recovery efforts

Real estate execs to city, state: Let us help with recovery efforts
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...