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| The Housing Bust: Sorry, It Ain't Over Yet ?
October 17, 2006
Who Really Gets Hammered When Housing Slows...
Most of the coverage of the companies impacted by the housing slowdown has focused on homebuilders and mortgage lenders. But what about everyone else associated with a new home purchase? A new survey from Move, Inc., the collection of real estate-related businesses formerly known as Homestore.com, highlights the huge spillover the housing boom has had on other companies. The study estimates that homebuyers and renters spend $170 billion annually on moving-related products and services, about $9,000 per household. Half that is invested in the home, including decorating, improvement and repairs. The rest goes to recurring services like banking, cable TV, telephone and Internet access. Movers often switch to new grocery stores, insurance companies, auto mechanics and pharmacies. Move found that many buying decisions were clustered around the two weeks immediately before and after a move. The majority of people surveyed reported purchasing major appliances, home electronics, furniture, window treatments, bedding, lawn and pest control supplies, all within the first two weeks of moving. What's also important for marketers is that customer loyalty is often up for grabs as movers reassess their purchases, opting in some cases to trade up to higher-end brands. No wonder Home Depot stock is off 18% from its high for the year, while the Dow Jones Industrial Average (of which Home Depot is a member) flirts with record highs.
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I sure don't get hammered in the housing correction.
Because I didn't buy!
Not that I didn't want to, but my credit took a severe hit when I had some financial problems a few years ago and could not qualify; thank God!
Or I would be like so many other millions of Americans who are on their third or foutrh refi and second or third second. Yeah, all the yuppie wannabes have been livin large in SUVs and big houses but the sweet, sweet correction is looming...I think I'll buy sometime next year, there probably will be a few good bankruptcy deals comming up...ha ha
Posted by: John O'Neill at October 18, 2006 10:53 PM
Hello from Holiday Florida ! I've seen my neighbor refinance 3 times in the last 3 years. Each time he would cash out equity.At one point he even got stuck with a variable rate mortgage. Though my neighbor initially paid less for his house than I did for mine; Now he owes 30,000 more than I do. He and his wife are both in their mid 50's and considering retirement.
Posted by: Rusty at October 21, 2006 02:42 PM