Huge discounts on the American house market.

New statistics indicate that the American house market will not recover immediately. In November there were sold more new houses than in the month before but that was due to the considerable discounts which the customers received. The average price for a house in the United States decreased in October with 13 per cent, the largest fall in more than 35 years.

In November 728,000 new houses were sold in the USA, a lot smaller than the average expectation of 750,000. Compared with previous year the quantity decreased with 25 per cent is. Many people can’t buy a house because of the new credit conditions. Everyone fears that the crisis on the house market will give a bad influence to the rest of the American economy.

In the third trimester the American GDP still grew with 4.9 percent but for the last three months of 2007 economist counts on less than 1 per cent increase.

According to me, the American economy will indeed be in a debt point due to the house market prices. However, I think that the American policy have to intervene much more is this subject in stead of making war in other countries.

http://www.tijd.be/nieuws/economie_financien

Benjamin