Tuesday, February 07, 2006

'A Break in the Housing Bubble'

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The U.S. Stock Exchange is starting to realize the inevitable a little more each day. Today it's new numbers from Toll Brothers. Reuters reports the following:
Luxury homes builder Toll's announcement that it was cutting the number of its homes sales forecast in 2006 spurred fresh worries that a decline in housing prices could hurt the economy.

"One of the biggest risks that the market faces in 2006 is that there will be a break in home prices…(Toll's) sales forecast has been cut. That suggests that we are starting to see a break in the housing bubble. That would lead to a decline in consumer confidence and consumer spending and would be bad news for the economy and earnings," said Hugh Johnson, chief investment officer of Johnson Illington Advisors Inc.

— The Boy in the Big Housing Bubble