New York, New York (PressExposure) October 27, 2009 -- "Source One International" advises clients to stay away from property purchase in Western markets unless absolutely necessary citing further downside potential in the coming months.
"Source One International" analysts say that their assertions that the US housing market will remain in the doldrums well into 2010 has been proven correct after housing starts data from the Commerce Department showed they rose by 0.5% in September to an annual rate of 590,000 missing analysts' estimates of 610,000 by 20,000 units.
The Asian-based boutique brokerage has, on more than one occasion, highlighted the folly of building more housing when inventories of unsold property remain at elevated levels and as mortgage delinquencies and subsequent foreclosures run at record highs.
"Source One International" believes that the $8,000 incentive offered to first-time buyers has effectively prevented the property market from finding a bottom and, if the government fails to extend it, real estate sales are likely to suffer the same fate as auto sales following the withdrawal of the so-called "cash for clunkers" incentive.
Analysts at "Source One International" are adamant that there is little demand for credit from US consumers; an opinion lent considerable weight by statistics showing that Americans are paying down debt and saving more.