Bloomberg story, pretty dire.

[MichaelW]

Hi guys,

Thankfully the US property market is showing signs of finding a bottom and should bottom out in the next 6-12 months. This will have the flow-on effect of propping up the US financial system which holds a lot of mortgaged US properties as security.

It will also improve US sentiment and help put an end to the bumble along economy. The flow on effect will be improved global growth and improved global credit availability. All good things, and not too far away now. If the US property market kept slumping then Freddie and Fannie wouldn't be the only financial institutions in the firing line. Good to see it bottoming out finally.

http://business.smh.com.au/business/glimmers-of-hope-for-us-housing-20080827-43b6.html

Lower prices, coupled with gas prices that have fallen from record highs, are restoring affordability for some homebuyers. And that is partly why Americans are feeling better about the economy.

The Conference Board, a private research group, said Tuesday that its consumer confidence index rose for the second month in a row.

And that's good news for the real estate market.

"Things are looking promising,'' Mr Gault said. "We're starting to see some of things we need to form a bottom in the next six to 12 months.''

Cheers,
Michael