There are growing indications that there is a slowdown occurring now. It is quite likely that we will see an increasing amount of stagnation throughout the summer. By October, the price stagnation in many areas will become price declines. It will be clear by then that the price appreciation of the past is not happening. Selling will follow as investors speculators and others try and get a peak price. For the most part they won't be able to get the 'peak price' . Inevitably, they will start lowering prices. The bubble is nearing its end.On a future recession, I wrote on December 19, 2006:
Additionally, an economic recession in very likely to occur in the US within the next 7 monthsExample #3 involves homebuilders stocks On June 20th, 2005 I wrote:
So how accurate were my three predictions? What else can be found in this blog's archives?
Other homebuilders were also lower Monday along with the broader market. Lennar (NYSE:LEN - News) was down 2% to $61.89, and KB Home (NYSE:KBH - News) was falling almost 3% to $75.19. Toll Brothers (NYSE:TOL - News) was losing 3.5% to $100.91, and Hovnanian (NYSE:HOV - News) was slipping 0.7% to $65.73. Pulte (NYSE:PHM - News) was down 3% to $83.22.The market is finally reacting to the growing indications that the bubble is about to burst. Keep yours eyes on these shares and watch them tumble even more. Remember there are about 15 million unoccupied housing units in this country.