America Homes about to go South. big time ... so hold on

We have been in Japan the past two weeks and seems they are a bit more stable than here but nothing to get excited about. The yen is going up and they are buying like crazy so there goes more of our treasuries to foregn countries. Talk about buying high in goods, they are the masters of it. If it isn't high quality they don't buy it. And conside the average price of a Louis Vuittonton purse at $400 in the US it is $1100 in Japan and that's just the average price and 8 out of 10 girls 21 and over have one or two. That's just the beginning of the spending that goes on there. Amazing, it's a walking fashion show every day at work and the week ends look like everyone just steped out of a fasshion show for the outdoors in Paris. But what's happening in America. Wal Mart saled are higher than ever and everyone has figured out that high end buying just isn't smart at least in America where we have a lot of concerns with our financial future.

Home sales are starting to take the track most of us predicted. Home sales are going down like crazy and as we expected those last to fall will probably fall the most like Denver, Atland and Chicago.

Todays numbers were an increase in home sales of 2.7% but that's only 64,000 homes, really bad. And the average prices dropped to 218.000 vs 240,000 a year ago. So hold on as the market starts the 6 inning of this hopefully only nine inning game. The home prices are heading south and don't be surprised to see 40 or 50% drops in most markets and those that have been rediculously overpriced like Denver to drop even more. Housing has to stay in lne with incomes and interest rates nd that's just a simple economic fact.

We must help get rid of this big inventory and once that happens we might see a light at the end of the tunnel by the end of next year, let's just hope it's not a train.

Best to all