October home sales fell in the United States by 1%, with analysts expecting further drops in the months ahead. If these falls in real estate continue, the prediction of uber-investor Jim Rogers that there is "100% chance" of another financial crisis will transpire.
As detailed in many previous articles on www.emergingmoney.com , global real estate is weak. It will only be going one way for the foreseeable future, with the exchange-traded fund for homebuilders, SPDR S&P Homebuilder ( XHB , quote ) off for the year. The weakness in global real estate has been the focus on many articles on www.emergingmoney.com . It is not just the United States, as emerging market homebuilders such as Xinyuan Real Estate ( XIN , quote ) of China and Brazil's Gafisa SA ( GFA , quote ) are both near 52-week lows.
Construction accounts for about one-fifth of the gross domestic product in China and the United States. If another financial crisis hits as Rogers claims and is worse than 2008 -- as he also predicts -- homebuilder and other real estate stocks will be devastated around the globe.