Why Demand for Precision Machined Parts for Appliances May Not Recover Soon
New appliances are part and parcel of home sales.
And home values.
“Home prices are down from their peak in June/July of 2006 through the trough in April 2009, the 10-City Composite is down 33.5% and the 20-City Composite is down 32.6%. Through September, they have recovered by +7.2% and +5.9%, respectively. The peak-to-date figures through September 2010 are -28.7% and -28.6%, respectively.“- S&P news release for the Case Shiller Home Price Index for September 2010
That doesn’t bode well for home appliance sales…
“Looking deeper into the data, in the monthly indices, 18 MSAs and both Composites were down in September over August. This is worse than August when 15 were down month-to-month. The only two which weren’t down in September were Las Vegas, which managed to stay a touch above the low set in July, and Washington DC. Overall, there are few, if any, good numbers in this month’s data.”
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“As of the third quarter of 2010, average home prices across the United States are at similar levels to what they were in the middle of 2003. The 2010 third quarter values fell by 2.0% over the second quarter, with a corresponding annual rate of return of -1.5%. Since its 2009 Q1 trough, nationally home prices have only grown by +4.9%.”
Now you can see why on PMPA’s Business Trends reporting, we refer to this as “The Lost Decade.”
