A Chill in the Air

The US property market seems to be rolling over, as this report from Theledger.com suggests.

The Federal reserve are in a difficult position. They are likely to increase interest rates again today in defense of the dollar, but rate tightening is putting pressure on the housing bubble and indebted American consumers. I think this is whats called being caught between a rock and a hard place.

Elsewhere, for the first time in nearly a decade, you can smell the anxiety. The
listing agent for a four-bedroom home on Scripps Trail in San Diego informed
other agents in the multiple-listing service that a "very, very motivated seller
will entertain all reasonable offers" and "will help with closing costs." The
house was listed in September at $810,000. After a previous price cut, the
seller is now willing to entertain offers as low as $685,000.The seller bought
the house for $730,000 in 2005, according to county property records, for what
the listing agent said were investment purposes.

http://www.theledger.com/apps/pbcs.dll/article?AID=/20060509/ZNYT01/605090404/1001/BUSINESS