Real Estate Downturn Continues

The downturn in housing shows no signs of improvement as Toll Brothers, the largest U.S. luxury home builder, said tighter credit is likely to weigh on its future bottom line.  S&P added to the negative tone when it lowered its credit rating on four home builders.  Moody's also has several home builders under review.

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Economy Remains Strong?

Treasury Secretary Henry Paulson said recently that the jarring credit crisis has increased risks to the global economy, which nonetheless remains strong overall.  Yet news continues nationwide about the suffering real estate and mortgage industries.

How can the real estate and mortgage markets continue month after month of downward numbers (new home starts, existing home sales, inventory, etc.) but yet the economy remain strong?

Seems like something doesn't add up here.  What do you think?  We'd love to hear your comments.  Do you think our economy is still strong, despite the continuous news about how bad the real estate sector of the economy is?  Do the continuous downward numbers in real estate really have the major effect on the overall economy that it once did, or is the economy not so dependent on the real estate and mortgage industries any more?

Tell us what you think.  Use the comment link below.  Your name and email address are required to comment, but don't worry, your email address will not be posted in your comment.  We respect your privacy and will not publish your email address.  We look forward to hearing from you.