The "official" housing recovery thread...
09-03-2010, 08:28 PM
#201
Burning Brakes
Canadian economists and realtors kept saying what happened in the US couldn't happen here because of our more stringent lending rules, but August numbers are in and house sales are down 22% and prices are down too. Some are predicting a real estate correction of 10, 20, even 30 percent, especially in the big cities like Toronto. Which is great news for me because I've been saving up for a down payment, I can't wait to swoop in and lowball someone and finally have my own house.
09-19-2010, 06:03 PM
#202
I feel the need...
Thread Starter
10 Reasons To Buy a Home
Enough with the doom and gloom about homeownership. Brett Arends explains why owning a home is a good thing.
http://online.wsj.com/article/SB1000...p_mostpop_read
Enough with the doom and gloom about homeownership.
Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.
After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make you rich?"
But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.....
Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.
After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make you rich?"
But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.....
09-27-2010, 07:33 PM
#203
I feel the need...
Thread Starter
Foreclosure Flaws May Delay Recovery by Slowing Home-Price Fall
Howard Cohen hasn’t paid the loan on his Tukwila, Washington, home in a year, and when he heard that Ally Financial Inc.’s GMAC Mortgage unit was suspending foreclosure evictions in 23 states, it gave him hope.
“Maybe I’ll stay in my house, too,” said Cohen, a 57- year-old commercial-loan broker.
An employee of Ally’s GMAC unit said in a December 2009 deposition that he signed thousands of foreclosure documents without verifying their accuracy. Attorneys general in Iowa, Illinois and Texas are investigating.
If uncovering such deficiencies halts thousands of pending foreclosures or renders void those that have already taken place, including repossessions of homes that have been resold, it could snarl courts for years and further postpone a recovery that can’t happen until real estate prices find a bottom, said Stuart Saft, a partner at New York-based Dewey & LeBoeuf LLP. Until home values start to rise, buyers will stay away, he said.
“You can’t get the economy moving until this whole situation gets straightened out,” Saft said. “Until we find the actual level of proper pricing, housing problems will persist. Dragging out foreclosures doesn’t help.....”
“Maybe I’ll stay in my house, too,” said Cohen, a 57- year-old commercial-loan broker.
An employee of Ally’s GMAC unit said in a December 2009 deposition that he signed thousands of foreclosure documents without verifying their accuracy. Attorneys general in Iowa, Illinois and Texas are investigating.
If uncovering such deficiencies halts thousands of pending foreclosures or renders void those that have already taken place, including repossessions of homes that have been resold, it could snarl courts for years and further postpone a recovery that can’t happen until real estate prices find a bottom, said Stuart Saft, a partner at New York-based Dewey & LeBoeuf LLP. Until home values start to rise, buyers will stay away, he said.
“You can’t get the economy moving until this whole situation gets straightened out,” Saft said. “Until we find the actual level of proper pricing, housing problems will persist. Dragging out foreclosures doesn’t help.....”
10-05-2010, 06:34 PM
#204
I feel the need...
Thread Starter
Foreign investors not scared of housing market
Lack of a recovery have many saying opportunities too cheap to turn down
http://www.msnbc.msn.com/id/39509509...s-real_estate/
The Viceroy, a swanky condominium complex in downtown Miami, gives the impression that the United States is in another real estate boom. The sales office is strangely exuberant. Buyers gush about the glam condos — designed by hipster tastemaker Kelly Wearstler — and their hotel-like amenities: poolside libations, daily housekeeping and room service food stirred up by a celebrity chef.
Since January, 262 of the Viceroy's 372 units have sold. But there's a twist: Almost 90 percent of the buyers are foreigners. And they all paid cash.
The Viceroy's story is playing out across Miami. Individual investors from as far as Argentina, Canada, Colombia, France, Israel, Italy, Norway and Venezuela are swarming the city's sales offices to get in on what they see as one of the greatest real estate fire sales in the history of the United States.
At one time, these people would have invested in the U.S. stock market. Now they see the opportunity of a lifetime in the nation's debilitated housing market. The idea is to rent out the properties and then sell them once the economy turns around.
The math is seductive: Prices at the Viceroy are roughly 52 percent off the 2007 peak. Units once sold for as much $670 a square foot. Today the average price is $319.
"I have never seen such a high concentration of foreign nationals acquiring real estate," says Peter Zalewski, who has been in real estate for 15 years and founded Condo Vultures, a consulting and brokerage firm. "Eighty percent of the sales in downtown Miami are foreign-based. This is unprecedented."
Miami is hardly the only hot spot for buyers from outside the United States. Real estate brokers say they've seen a surge in Washington, New York, Las Vegas, Los Angeles and San Francisco. In Seattle, Asians are buying property sight unseen, says Joe Brazen of Brazen Sotheby's International. In New York, 25 percent of buyers at the Armani-designed 20 Pine building, near the World Trade Center site, are from overseas.....
Since January, 262 of the Viceroy's 372 units have sold. But there's a twist: Almost 90 percent of the buyers are foreigners. And they all paid cash.
The Viceroy's story is playing out across Miami. Individual investors from as far as Argentina, Canada, Colombia, France, Israel, Italy, Norway and Venezuela are swarming the city's sales offices to get in on what they see as one of the greatest real estate fire sales in the history of the United States.
At one time, these people would have invested in the U.S. stock market. Now they see the opportunity of a lifetime in the nation's debilitated housing market. The idea is to rent out the properties and then sell them once the economy turns around.
The math is seductive: Prices at the Viceroy are roughly 52 percent off the 2007 peak. Units once sold for as much $670 a square foot. Today the average price is $319.
"I have never seen such a high concentration of foreign nationals acquiring real estate," says Peter Zalewski, who has been in real estate for 15 years and founded Condo Vultures, a consulting and brokerage firm. "Eighty percent of the sales in downtown Miami are foreign-based. This is unprecedented."
Miami is hardly the only hot spot for buyers from outside the United States. Real estate brokers say they've seen a surge in Washington, New York, Las Vegas, Los Angeles and San Francisco. In Seattle, Asians are buying property sight unseen, says Joe Brazen of Brazen Sotheby's International. In New York, 25 percent of buyers at the Armani-designed 20 Pine building, near the World Trade Center site, are from overseas.....
01-13-2011, 04:23 PM
#206
Moderator Alumnus
It's coming, no question.
Today's report from RealtyTrac serves as a warning to big banks, Fannie, Freddie and local communities; The foreclosure glut is coming, and they'd better be ready to get rid of that glut in a big way.
2010 saw a record number of bank repossessions, over a million, even with a big drop in volume toward the end of the year, thanks to the robo-signing scandal and ensuing foreclosure freezes.
"Early indications in January were that this robo-signing related delay will be over by the end of first quarter if not sooner," says RealtyTrac's Rick Sharga. "I think we're going to see a significant spike in foreclosure activity early in 2011, and that will contribute in part to 2011 being a record year."
Sharga estimates as many as a quarter of a million foreclosures that should have happened in 2010 will now be pushed into the 2011 numbers, and added to an already huge supply of bank owned properties. The four biggest banks already have close to $7 billion worth of foreclosed properties (REO) on their books, and Fannie and Freddie have about $24 billion collectively. While REO sales make up about one third of all sales in the current market, there is an estimated 3 year supply.
http://m.cnbc.com/us_news/41059824
Today's report from RealtyTrac serves as a warning to big banks, Fannie, Freddie and local communities; The foreclosure glut is coming, and they'd better be ready to get rid of that glut in a big way.
2010 saw a record number of bank repossessions, over a million, even with a big drop in volume toward the end of the year, thanks to the robo-signing scandal and ensuing foreclosure freezes.
"Early indications in January were that this robo-signing related delay will be over by the end of first quarter if not sooner," says RealtyTrac's Rick Sharga. "I think we're going to see a significant spike in foreclosure activity early in 2011, and that will contribute in part to 2011 being a record year."
Sharga estimates as many as a quarter of a million foreclosures that should have happened in 2010 will now be pushed into the 2011 numbers, and added to an already huge supply of bank owned properties. The four biggest banks already have close to $7 billion worth of foreclosed properties (REO) on their books, and Fannie and Freddie have about $24 billion collectively. While REO sales make up about one third of all sales in the current market, there is an estimated 3 year supply.
http://m.cnbc.com/us_news/41059824
04-20-2011, 05:00 PM
#207
I feel the need...
Thread Starter
Americans Shun Cheapest Homes in 40 Years as Ownership Fades
April 19 (Bloomberg) -- Victoria Pauli signed a one-year lease last week to stay in her rental home in Fair Oaks, California. She had considered buying in the area, where property prices have slumped 57 percent since a 2005 peak.
In the end, she decided it wasn’t worth it.
“I know people who have watched their home values get cut in half, and I know people who are losing their homes,” said Pauli, 31, who works as a property manager for a real estate company. “It’s part of the American dream to want to own your own home, and I used to feel that way, but now I tell myself: Be careful what you wish for.”
The most affordable real estate in a generation is failing to lure buyers as Americans like Pauli sour on the idea of home ownership. At the end of 2010, the fourth year of the housing collapse, the share of people who said a home was a safe investment dropped to 64 percent from 70 percent in the first quarter. The December figure was the lowest in a survey that goes back to 2003, when it was 83 percent.
“The magnitude of the housing crash caused permanent changes in the way some people view home ownership,” said Michael Lea, a finance professor at San Diego State University. “Even as the economy improves, there are some who will never buy a home because their confidence in real estate is gone.....”
In the end, she decided it wasn’t worth it.
“I know people who have watched their home values get cut in half, and I know people who are losing their homes,” said Pauli, 31, who works as a property manager for a real estate company. “It’s part of the American dream to want to own your own home, and I used to feel that way, but now I tell myself: Be careful what you wish for.”
The most affordable real estate in a generation is failing to lure buyers as Americans like Pauli sour on the idea of home ownership. At the end of 2010, the fourth year of the housing collapse, the share of people who said a home was a safe investment dropped to 64 percent from 70 percent in the first quarter. The December figure was the lowest in a survey that goes back to 2003, when it was 83 percent.
“The magnitude of the housing crash caused permanent changes in the way some people view home ownership,” said Michael Lea, a finance professor at San Diego State University. “Even as the economy improves, there are some who will never buy a home because their confidence in real estate is gone.....”
04-26-2011, 12:47 PM
#208
The sizzle in the Steak
Home prices in 'double dip'
NEW YORK (CNNMoney) -- Home prices in February sank 3.3% to just above the post-crisis lows reached in April 2009. It was the seventh straight month of declines.
Home values are down 32% from their peak set in May of 2006, according to the S&P/Case-Shiller index of home prices in 20 cities.
There is very little, if any, good news about housing," said David Blitzer, spokesman for S&P. "Prices continue to weaken, trends in sales and construction are disappointing."
The drop has come in two stages. First, the index recorded 36 months of nearly uninterrupted declines after reaching the spring 2006 peak. Then came a 13-month upswing during which the index recorded a 5% gain. That rebound ended last June.
Since then, the index has recorded losses every month and it has now edged closer to a new low -- the dreaded double-dip.
The index now stands at 139.27, just a whisker above the first low, which came in April of 2009, when the index was at 139.26.
Home values are down 32% from their peak set in May of 2006, according to the S&P/Case-Shiller index of home prices in 20 cities.
There is very little, if any, good news about housing," said David Blitzer, spokesman for S&P. "Prices continue to weaken, trends in sales and construction are disappointing."
The drop has come in two stages. First, the index recorded 36 months of nearly uninterrupted declines after reaching the spring 2006 peak. Then came a 13-month upswing during which the index recorded a 5% gain. That rebound ended last June.
Since then, the index has recorded losses every month and it has now edged closer to a new low -- the dreaded double-dip.
The index now stands at 139.27, just a whisker above the first low, which came in April of 2009, when the index was at 139.26.
05-02-2011, 06:26 PM
#209
I feel the need...
Thread Starter
New Households Form at Fastest Rate Since ’07 in Resurgent U.S
Shelby Webb, 22, rented her first apartment three weeks ago in Chattanooga, Tennessee, after landing a job translating ads for a Spanish-language newspaper. Now, she’s paying monthly bills for electricity, cable television and natural gas for the first time and has bought new pillows from Wal-Mart Stores Inc. (WMT)
Millions of young adults like Webb are starting to leave their parents’ homes, creating households at the fastest rate since 2007. They’re helping to provide a so-called shadow supply that may boost U.S. housing starts more than 50 percent by next year and spur consumption at a rate almost double that of the past two years.
“I love my parents but I didn’t want to live with them anymore,” said Webb, a Spanish major at the University of Tennessee, who had been forced to share their home in Milan, Tennessee, after her job search stalled last year. “It was tough. I know students across the board who were in the same boat.”
Between 750,000 and 1 million new households will be created in 2011, predict UBS Securities LLC’s Maury Harris and IHS Global Insight’s Patrick Newport. That compares with just 357,000 added in the year ended March 2010, the lowest on record, according to the Census Bureau. As employment picks up, new households are likely to rise above the past decade’s average of 1.3 million a year, according to Newport.....
Millions of young adults like Webb are starting to leave their parents’ homes, creating households at the fastest rate since 2007. They’re helping to provide a so-called shadow supply that may boost U.S. housing starts more than 50 percent by next year and spur consumption at a rate almost double that of the past two years.
“I love my parents but I didn’t want to live with them anymore,” said Webb, a Spanish major at the University of Tennessee, who had been forced to share their home in Milan, Tennessee, after her job search stalled last year. “It was tough. I know students across the board who were in the same boat.”
Between 750,000 and 1 million new households will be created in 2011, predict UBS Securities LLC’s Maury Harris and IHS Global Insight’s Patrick Newport. That compares with just 357,000 added in the year ended March 2010, the lowest on record, according to the Census Bureau. As employment picks up, new households are likely to rise above the past decade’s average of 1.3 million a year, according to Newport.....
05-03-2011, 06:19 PM
#210
I feel the need...
Thread Starter
Housing’s Good News Is Government Cash Shortage
By Caroline Baum
May 3 (Bloomberg) -- With U.S. home prices back down to their 2009 lows, you might be wondering what all the government programs to stabilize the housing market have accomplished.
And for good reason. Various federal initiatives, especially the first-time homebuyer’s tax credit, seemed to put a brake on the three-year dive in prices from July 2006, the peak, to April 2009. Home sales and prices bounced, only to hit the skids when the program ended in April 2010. Which is what you’d expect when the government stops cutting checks for $8,000, payable to the homeowner on completion of his purchase.
Was the two-year respite worth it? Would prices have fallen harder and faster if left to their own devices and now be showing signs of stabilization?
It sure seems that way. Instead, two years and billions of dollars later, home prices are back to their 2009 lows, according to the S&P Case-Shiller Index for February.....
May 3 (Bloomberg) -- With U.S. home prices back down to their 2009 lows, you might be wondering what all the government programs to stabilize the housing market have accomplished.
And for good reason. Various federal initiatives, especially the first-time homebuyer’s tax credit, seemed to put a brake on the three-year dive in prices from July 2006, the peak, to April 2009. Home sales and prices bounced, only to hit the skids when the program ended in April 2010. Which is what you’d expect when the government stops cutting checks for $8,000, payable to the homeowner on completion of his purchase.
Was the two-year respite worth it? Would prices have fallen harder and faster if left to their own devices and now be showing signs of stabilization?
It sure seems that way. Instead, two years and billions of dollars later, home prices are back to their 2009 lows, according to the S&P Case-Shiller Index for February.....
06-02-2011, 08:14 PM
#211
I feel the need...
Thread Starter
Bottom May Be Near for Slide in Housing
How low can the market go?
For real estate, some economists say, an end to the seemingly endless decline in housing values might be in sight.
Not immediately. At the moment, prices are still dropping. In 20 large cities, prices fell 0.8 percent in March from the previous month, according to the Standard & Poor’s Case-Shiller Home Price Index released Tuesday. That pushed the closely watched index below its level of two years ago to a new post-bubble low, and put it 33.1 percent under its July 2006 peak.
Few analysts expect housing prices to rebound anytime soon. But quite a few are predicting that the market is close to the moment when things will stop getting worse, which will be a major improvement all by itself.....
For real estate, some economists say, an end to the seemingly endless decline in housing values might be in sight.
Not immediately. At the moment, prices are still dropping. In 20 large cities, prices fell 0.8 percent in March from the previous month, according to the Standard & Poor’s Case-Shiller Home Price Index released Tuesday. That pushed the closely watched index below its level of two years ago to a new post-bubble low, and put it 33.1 percent under its July 2006 peak.
Few analysts expect housing prices to rebound anytime soon. But quite a few are predicting that the market is close to the moment when things will stop getting worse, which will be a major improvement all by itself.....
06-07-2011, 09:41 AM
#212
'05 TSX 6MT
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I won't give you an "all clear" on the national index right now. Further price declines coming, certainly on a real basis.
My markets, price indexes have been declining over the last 3 quarters at an increasing rate. Will take at least another year to stop this tanker. Nobody is even thinking about overshooting the bottom...
Diving into my numbers, the increasingly sharp decline has much to do with huge price losses on strange new construction products that likely would have gone down by more than 10%, even with a tail wind. So, my markets are not a bad as they seem, but are still terrible, stubborn and declining
My markets, price indexes have been declining over the last 3 quarters at an increasing rate. Will take at least another year to stop this tanker. Nobody is even thinking about overshooting the bottom...
Diving into my numbers, the increasingly sharp decline has much to do with huge price losses on strange new construction products that likely would have gone down by more than 10%, even with a tail wind. So, my markets are not a bad as they seem, but are still terrible, stubborn and declining
06-10-2011, 05:24 PM
#213
The sizzle in the Steak
....and we have still more to fall....no bottom in sight.
JPMorgan Forecasts Another Drop in Home Prices
http://www.cnbc.com/id/43354054
JPMorgan Chase is forecasting another 4 to 5 percent drop in home values over the next 12 months.
Housing Wire has the details:
In its June 2011 Home Price Monitor Report, the bank lowered its base home price forecast to a level that's 37 percent under peak price levels.
The financial-services firm blames its lowered price expectations on a supply-and-demand imbalance, as well as anemic consumer demand and disappointing economic reports.
Making matters worse, JPMorgan's [JPM 41.05 0.07 (+0.17%) ] Home Price Monitor report points to a 12 percent drop in pending home sales in the month of April.
The bank said, "A looming question is when and if lending standards will ease enough to boost demand."
Of course, with big banks such as JPMorgan Chase saying they won't own mortgages under new capital requirements, lending standards probably aren't easing soon.
Housing Wire has the details:
In its June 2011 Home Price Monitor Report, the bank lowered its base home price forecast to a level that's 37 percent under peak price levels.
The financial-services firm blames its lowered price expectations on a supply-and-demand imbalance, as well as anemic consumer demand and disappointing economic reports.
Making matters worse, JPMorgan's [JPM 41.05 0.07 (+0.17%) ] Home Price Monitor report points to a 12 percent drop in pending home sales in the month of April.
The bank said, "A looming question is when and if lending standards will ease enough to boost demand."
Of course, with big banks such as JPMorgan Chase saying they won't own mortgages under new capital requirements, lending standards probably aren't easing soon.
08-18-2011, 12:08 PM
#214
Moderator Alumnus
Home prices in some of the nation's hardest-hit metro areas have fallen far below pre-bubble levels, stirring concerns that properties in those markets are undervalued.
In a recent analysis, real-estate firm Zillow Inc. studied the correlation between home prices and annual incomes over the 15-year period that ended in 2000, before home prices began to surge.
For decades, price-to-income levels have moved in tandem, with a specific housing market's prices rising or falling in line with local residents' incomes. Many economists say that makes the price-to-income ratio a good gauge for determining whether housing is undervalued or overvalued for a given market.
Zillow found property prices in one-third of nearly 130 housing markets across the nation were undervalued, when compared with residents' current income and the pre-bubble trend.
"At a broad level, it is helpful to understand that if people in certain markets paid three times their average income in housing before the bubble, those markets are probably going to get back to that level," said Stan Humphries, chief economist at Zillow.
The analysis underscores a broader point: While the nation's housing markets largely fell and rose together during the housing boom and bust, they aren't likely to hit bottom and begin recovery at the same time or pace. The Zillow analysis shows that many markets still appear to be overvalued.
For the U.S. as a whole, home prices were around 2.9 times incomes from 1985 to 2000. But during the housing boom, values increased at a much faster rate than incomes. The price-to-income ratio peaked at around 5.1 in 2005. Home prices have since fallen so that on average, nationally, prices are around 3.3 times incomes, or about 14% above the historical trend.
Of course, prices have fallen much faster in certain markets. In Las Vegas, home prices are now 25% below their historic price-to-income trend of 2.7. During the housing bubble, that ratio more than doubled to 5.6. Home prices have been falling for the past five years, and by March, prices were just 2.1 times household incomes.
http://online.wsj.com/article/SB1000...609819142.html
In a recent analysis, real-estate firm Zillow Inc. studied the correlation between home prices and annual incomes over the 15-year period that ended in 2000, before home prices began to surge.
For decades, price-to-income levels have moved in tandem, with a specific housing market's prices rising or falling in line with local residents' incomes. Many economists say that makes the price-to-income ratio a good gauge for determining whether housing is undervalued or overvalued for a given market.
Zillow found property prices in one-third of nearly 130 housing markets across the nation were undervalued, when compared with residents' current income and the pre-bubble trend.
"At a broad level, it is helpful to understand that if people in certain markets paid three times their average income in housing before the bubble, those markets are probably going to get back to that level," said Stan Humphries, chief economist at Zillow.
The analysis underscores a broader point: While the nation's housing markets largely fell and rose together during the housing boom and bust, they aren't likely to hit bottom and begin recovery at the same time or pace. The Zillow analysis shows that many markets still appear to be overvalued.
For the U.S. as a whole, home prices were around 2.9 times incomes from 1985 to 2000. But during the housing boom, values increased at a much faster rate than incomes. The price-to-income ratio peaked at around 5.1 in 2005. Home prices have since fallen so that on average, nationally, prices are around 3.3 times incomes, or about 14% above the historical trend.
Of course, prices have fallen much faster in certain markets. In Las Vegas, home prices are now 25% below their historic price-to-income trend of 2.7. During the housing bubble, that ratio more than doubled to 5.6. Home prices have been falling for the past five years, and by March, prices were just 2.1 times household incomes.
http://online.wsj.com/article/SB1000...609819142.html
08-18-2011, 12:20 PM
#215
TQ > MPG
My house when I bought it was 2.00 times our annual household income. Now its current market rate according to Zillow is only 1.14 times my annual income. Yeah, I'd say its way undervalued.
And we are in a desirable area with good schools, not many foreclosures, and not many if at all cutbacks for public services.
It would just be nice to get somewhere close to the value back in 2006. I know alot of people say that, but our market had been taking a crap since early 2005.
And we are in a desirable area with good schools, not many foreclosures, and not many if at all cutbacks for public services.
It would just be nice to get somewhere close to the value back in 2006. I know alot of people say that, but our market had been taking a crap since early 2005.
08-18-2011, 01:55 PM
#216
The sizzle in the Steak
The housing market will not come back until the jobs come back.
10-31-2011, 01:32 PM
#218
The sizzle in the Steak
Home prices heading for triple-dip
NEW YORK (CNNMoney) -- The besieged housing market has even further to fall before home prices really hit rock bottom.
According to Fiserv (FISV), a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices.
Several factors will be working against the housing market in the upcoming months, including an increase in foreclosure activity and sustained high unemployment, explained David Stiff, Fiserv's chief economist.
Should home values meet Fiserv's expectations, it would make it the third (and lowest) trough for home prices since the housing bubble burst.
According to Fiserv (FISV), a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices.
Several factors will be working against the housing market in the upcoming months, including an increase in foreclosure activity and sustained high unemployment, explained David Stiff, Fiserv's chief economist.
Should home values meet Fiserv's expectations, it would make it the third (and lowest) trough for home prices since the housing bubble burst.
11-21-2011, 04:25 PM
#219
I feel the need...
Thread Starter
Housing Market May Be Nearing a Bottom
The housing market is starting to show a pulse.
For the first time in a long time, housing figures are coming in better than expected. The National Association of Home Builders' sentiment index jumped three points this month to 20, its highest reading in over a year. Last week, the Commerce Department said building permits and construction of single-family homes rose in October. The Federal Reserve's fourth-quarter loan survey showed a pickup in demand for mortgage loans......
For the first time in a long time, housing figures are coming in better than expected. The National Association of Home Builders' sentiment index jumped three points this month to 20, its highest reading in over a year. Last week, the Commerce Department said building permits and construction of single-family homes rose in October. The Federal Reserve's fourth-quarter loan survey showed a pickup in demand for mortgage loans......
02-22-2012, 05:29 PM
#220
I feel the need...
Thread Starter
Sales of Previously Owned U.S. Homes Increased in January
Feb. 22 (Bloomberg) -- Sales of previously owned U.S. houses rose in January to the highest level since May 2010, adding to signs the housing market is regaining its footing.
Purchases climbed 4.3 percent to a 4.57 million annual rate, less than forecast, from a revised 4.38 million pace in December that was slower than previously estimated, a report from National Association of Realtors showed today in Washington. The median forecast in a Bloomberg News survey called for a rise to 4.66 million. Prices and inventory fell.
A strengthening job market, combined with record affordability driven by low home prices and mortgage rates, is helping underpin demand. Nonetheless, the Federal Reserve and Obama administration are striving to find ways to lend the industry additional assistance amid concern mounting foreclosures will continue to hinder the recovery.....
Purchases climbed 4.3 percent to a 4.57 million annual rate, less than forecast, from a revised 4.38 million pace in December that was slower than previously estimated, a report from National Association of Realtors showed today in Washington. The median forecast in a Bloomberg News survey called for a rise to 4.66 million. Prices and inventory fell.
A strengthening job market, combined with record affordability driven by low home prices and mortgage rates, is helping underpin demand. Nonetheless, the Federal Reserve and Obama administration are striving to find ways to lend the industry additional assistance amid concern mounting foreclosures will continue to hinder the recovery.....
02-23-2012, 03:03 PM
#222
It is a GOOD sign, after all, this inventory needs to be dealt with but this is by no means a sign of a strengthening market and certainly not an indication values are going to rise.
02-24-2012, 06:46 PM
#223
The sizzle in the Steak
New-home sales fall for first time in five months
They were down 0.9% nationally in January to a seasonally adjusted rate of 321,000 from December's 324,000, which had been the highest rate in a year.
More home buyers turned to older homes in January, pushing sales of new homes down 0.9% in their first drop in five months.
Sales of new residential properties slipped nationally to a seasonally adjusted rate of 321,000 from December's 324,000, which had been the highest rate in a year, according to the Commerce Department.
But compared with January 2011, sales were up 3.5%. The median price of a new home was $217,000, down 9.6% year over year.
Still, buyers rattled by high unemployment and mixed economic messages were leaning more toward existing homes, which are usually less expensive than new ones.
About 151,000 new homes were listed for sale — a record low. The homes will take 5.6 months to sell off, according to the report.
In the West, new-home sales were up 5.6% compared with last January. Sales were up 15.3% in the South but slumped 11.9% in the Midwest and 39.4% in the Northeast.
As for homes yet to be constructed, builders are still feeling the hurt, according to the Building Industry Assn. of Southern California.
The number of new construction permits pulled for properties took a nose dive in three major counties last month compared with a year earlier, deflating 44% in Los Angeles County, 53% in Orange County and 41% in San Bernardino County.
http://www.latimes.com/business/la-f...,7831981.story
More home buyers turned to older homes in January, pushing sales of new homes down 0.9% in their first drop in five months.
Sales of new residential properties slipped nationally to a seasonally adjusted rate of 321,000 from December's 324,000, which had been the highest rate in a year, according to the Commerce Department.
But compared with January 2011, sales were up 3.5%. The median price of a new home was $217,000, down 9.6% year over year.
Still, buyers rattled by high unemployment and mixed economic messages were leaning more toward existing homes, which are usually less expensive than new ones.
About 151,000 new homes were listed for sale — a record low. The homes will take 5.6 months to sell off, according to the report.
In the West, new-home sales were up 5.6% compared with last January. Sales were up 15.3% in the South but slumped 11.9% in the Midwest and 39.4% in the Northeast.
As for homes yet to be constructed, builders are still feeling the hurt, according to the Building Industry Assn. of Southern California.
The number of new construction permits pulled for properties took a nose dive in three major counties last month compared with a year earlier, deflating 44% in Los Angeles County, 53% in Orange County and 41% in San Bernardino County.
http://www.latimes.com/business/la-f...,7831981.story
03-07-2012, 06:21 PM
#224
I feel the need...
Thread Starter
U.S. Housing Lays Foundation for Recovery as Buyers Coaxed Back
Dan Kowalyshyn figures he owes about $200,000 more than what his four-bedroom house is worth today. It faces a cul-de-sac where three of the six homes have been lost to foreclosure since his $570,000 purchase in 2006.
The software developer has decided to keep up on his mortgage payments because he sees signs of improvement outside his window. Trucks drive by to deliver lumber for houses being constructed by PulteGroup Inc. (PHM), KB Home and Meritage Homes Corp. (MTH)
“Either those builders are insane or they’re getting some traction selling new homes,” Kowalyshyn, 40, said in a telephone interview from his house in Eastvale, California, 45 miles (72 kilometers) east of Los Angeles. “I think we’re seeing the beginning of a recovery.”
After several false starts, housing is flashing the strongest signals yet of a sustainable rebound.....
The software developer has decided to keep up on his mortgage payments because he sees signs of improvement outside his window. Trucks drive by to deliver lumber for houses being constructed by PulteGroup Inc. (PHM), KB Home and Meritage Homes Corp. (MTH)
“Either those builders are insane or they’re getting some traction selling new homes,” Kowalyshyn, 40, said in a telephone interview from his house in Eastvale, California, 45 miles (72 kilometers) east of Los Angeles. “I think we’re seeing the beginning of a recovery.”
After several false starts, housing is flashing the strongest signals yet of a sustainable rebound.....
03-18-2012, 07:13 PM
#225
I feel the need...
Thread Starter
Mortgages Bring Record Savings Over U.S. Rents: Chart of the Day
Rents averaged 14.9 percent more than home-loan payments during the last three months of 2011, the report said. The gap widened from the third quarter by 8.1 points, and rentals were more costly for the fifth consecutive quarter.....
03-21-2012, 12:55 PM
#226
The Rent vs Buy equation varies DRASTICALLY across the country and coming up with a single number for the entire country is utterly pointless, meaningless and ridiculous.
These articles also make no consideration for any of the following:
-Property Tax
-HOA dues
-General maintenance
-Emergencies such as failed major appliances, roofs, water infiltration, invasive pests, or any other repairs
Factor any (or all) of those items and in most locations renting is still cheaper.
Not to mention for the large contingent of the poplulation who needs some mobility, home ownership at any cost is stupid. If you need to move (or potentially need to move) the market is still far to volatile to make buying make any sense whatsoever. Not to mention you will lose your ass on closing costs by buying and selling frequently even if the value of the property doesnt drop...
Hopefully people are intelligent enough to think about the full picture before latching onto silly articles like this with statistics that are meaningless and narrow in scope.
03-30-2012, 05:36 AM
#227
I feel the need...
Thread Starter
Bidding Wars Erupt as U.S. Supply of Homes for Sale Falls
Matthew and Carina Hensley offered $10,000 more than the asking price for a three-bedroom house in suburban Seattle, then lost out to one of seven other bidders.
Their $270,000 proposal last month came with a family portrait and a letter introducing the couple, their eight-month- old daughter, Harper, and their desire to build a family in the Renton, Washington, house with a yard backing onto a woody hillside.
Bidding wars, absent from most parts of the U.S. residential market since its peak in 2006, are erupting from Seattle and Silicon Valley to Miami and Washington, D.C. The inventory of homes hovers close to a six-year low, while an increase in jobs and record affordability are tempting more buyers.....
Their $270,000 proposal last month came with a family portrait and a letter introducing the couple, their eight-month- old daughter, Harper, and their desire to build a family in the Renton, Washington, house with a yard backing onto a woody hillside.
Bidding wars, absent from most parts of the U.S. residential market since its peak in 2006, are erupting from Seattle and Silicon Valley to Miami and Washington, D.C. The inventory of homes hovers close to a six-year low, while an increase in jobs and record affordability are tempting more buyers.....
03-30-2012, 05:39 AM
#228
I feel the need...
Thread Starter
Mortgage-Rate Change Could Pack a Punch
Cheap mortgages can't last forever. Years from now, there is a good chance home buyers will look back longingly at today's super-low yields.....
03-30-2012, 08:15 AM
#229
Its awfully easy to find happy joyful news reports about the real estate conditions in places like DC and Silicon Valley...how about a little reality check.
http://www.chicagonow.com/getting-re...l-in-11-years/
Sure, the most affluent pockets of America may have stablized (for now) but theres alot more to ths USA than DC and California...
http://www.chicagonow.com/getting-re...l-in-11-years/
Sure, the most affluent pockets of America may have stablized (for now) but theres alot more to ths USA than DC and California...
03-30-2012, 08:19 AM
#230
Heres another reality check for you. Congrats to you on winning the geographic lottery. The country is essentially a big game of musical chairs and if you happen to settle in a place that doesnt have a chair for you, your screwed....but if you were able to snag a chair in DC, Silicon Valley, etc, then you scratch your head wondering what everyone is fussing about, right?
http://realestate.yahoo.com/promo/ci...me-prices.html
http://realestate.yahoo.com/promo/ci...me-prices.html
04-02-2012, 06:12 PM
#231
I feel the need...
Thread Starter
At an Engineering Society of Detroit job fair in Novi last month, open jobs outnumbered job seekers nearly 6-1.
04-02-2012, 10:58 PM
#232
Moderator Alumnus
At least 20 times a day, Alan Hladik walks into a fixer-upper and tries to figure out if it is worth buying.
As an inspector for the Waypoint Real Estate Group, Mr. Hladik takes about 20 minutes to walk through each home, noting worn kitchen cabinets or missing roof tiles. The blistering pace is necessary to keep up with Waypoint’s appetite: the company, which has bought about 1,200 homes since 2008 — and is now buying five to seven a day — is an early entrant in a business that some deep-pocketed investors are betting is poised to explode.
With home prices down more than a third from their peak and the market swamped with foreclosures, large investors are salivating at the opportunity to buy perhaps thousands of homes at deep discounts and fill them with tenants. Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses. Typically, landlords tend to be individuals or small firms that own just a handful of homes.
But the new investors believe the rental income can deliver returns well above those offered by Treasury securities or stock dividends. At the same time, economists say, they could help areas hardest hit by the housing crash reach a bottom of the market.
This year, Waypoint signed a $400 million deal with GI Partners, a private equity firm in Silicon Valley. Gary Beasley, Waypoint’s managing director, says the company plans to buy 10,000 to 15,000 more homes by the end of next year. Other large private equity investors — including Colony Capital, GTIS Partners and Oaktree Capital Management, in partnership with the Carrington Holding Company — have committed millions to this new market, and Lewis Ranieri, often called the inventor of the mortgage bond, is considering it, too.
In February, the Federal Housing Finance Agency, which oversees the government-backed mortgage companies Fannie Mae and Freddie Mac, announced that it would sell about 2,500 homes in a pilot program in eight metropolitan areas, including Atlanta, Chicago and Los Angeles.
And Bank of America said in late March that it would begin testing a plan to allow homeowners facing foreclosure the chance to rent back their homes and wipe out their mortgage debt. Eventually, the bank said, it could sell the houses to investors.
Waypoint executives say they can handle large volumes because they have developed computer systems that help them make quick buying decisions and manage renovations and rentals.
“We realized that there is a tremendous amount of brain damage around acquiring single-family homes, renovating them and renting them out,” said Colin Wiel, a Waypoint co-founder. “We think this is a huge opportunity and we are going to treat it like a factory and create a production line to do this.”
http://www.nytimes.com/2012/04/03/bu...thousands.html
As an inspector for the Waypoint Real Estate Group, Mr. Hladik takes about 20 minutes to walk through each home, noting worn kitchen cabinets or missing roof tiles. The blistering pace is necessary to keep up with Waypoint’s appetite: the company, which has bought about 1,200 homes since 2008 — and is now buying five to seven a day — is an early entrant in a business that some deep-pocketed investors are betting is poised to explode.
With home prices down more than a third from their peak and the market swamped with foreclosures, large investors are salivating at the opportunity to buy perhaps thousands of homes at deep discounts and fill them with tenants. Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses. Typically, landlords tend to be individuals or small firms that own just a handful of homes.
But the new investors believe the rental income can deliver returns well above those offered by Treasury securities or stock dividends. At the same time, economists say, they could help areas hardest hit by the housing crash reach a bottom of the market.
This year, Waypoint signed a $400 million deal with GI Partners, a private equity firm in Silicon Valley. Gary Beasley, Waypoint’s managing director, says the company plans to buy 10,000 to 15,000 more homes by the end of next year. Other large private equity investors — including Colony Capital, GTIS Partners and Oaktree Capital Management, in partnership with the Carrington Holding Company — have committed millions to this new market, and Lewis Ranieri, often called the inventor of the mortgage bond, is considering it, too.
In February, the Federal Housing Finance Agency, which oversees the government-backed mortgage companies Fannie Mae and Freddie Mac, announced that it would sell about 2,500 homes in a pilot program in eight metropolitan areas, including Atlanta, Chicago and Los Angeles.
And Bank of America said in late March that it would begin testing a plan to allow homeowners facing foreclosure the chance to rent back their homes and wipe out their mortgage debt. Eventually, the bank said, it could sell the houses to investors.
Waypoint executives say they can handle large volumes because they have developed computer systems that help them make quick buying decisions and manage renovations and rentals.
“We realized that there is a tremendous amount of brain damage around acquiring single-family homes, renovating them and renting them out,” said Colin Wiel, a Waypoint co-founder. “We think this is a huge opportunity and we are going to treat it like a factory and create a production line to do this.”
http://www.nytimes.com/2012/04/03/bu...thousands.html
04-28-2012, 05:23 AM
#233
I feel the need...
Thread Starter
Stunned Home Buyers Find the Bidding Wars Are Back
A new development is catching home buyers off guard as the spring sales season gets under way: Bidding wars are back.
From California to Florida, many buyers are increasingly competing for the same house. Unlike the bidding wars that typified the go-go years and largely reflected surging sales, today's are a result of supply shortages.
"It's a little surprising because we thought bidding wars were done with," said Andy Aley, who is looking to buy his first home in Seattle's Beacon Hill neighborhood. The 31-year-old attorney was outbid this year when he offered up to $23,000 above the $357,000 listing price and agreed to waive inspections and other closing conditions.
Competitive bidding in the current environment isn't producing huge price increases or leaving sellers with hefty profits, as occurred during the housing boom. Still, the bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump......
From California to Florida, many buyers are increasingly competing for the same house. Unlike the bidding wars that typified the go-go years and largely reflected surging sales, today's are a result of supply shortages.
"It's a little surprising because we thought bidding wars were done with," said Andy Aley, who is looking to buy his first home in Seattle's Beacon Hill neighborhood. The 31-year-old attorney was outbid this year when he offered up to $23,000 above the $357,000 listing price and agreed to waive inspections and other closing conditions.
Competitive bidding in the current environment isn't producing huge price increases or leaving sellers with hefty profits, as occurred during the housing boom. Still, the bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump......
04-28-2012, 06:47 AM
#234
Team Owner
I've seen more houses going up for sale in my neighborhood but they don't seem to be going anywhere. 
05-07-2012, 05:37 AM
#235
I feel the need...
Thread Starter
Pimco Housing Bear Kiesel Says It’s Time to Start Buying
Mark Kiesel, the Pacific Investment Management Co. managing director who sold his home in 2006 when he deemed the market a bubble, says it’s time to buy.
“I was one of the most negative on housing,” Kiesel said in a telephone interview. “I finally came to the conclusion housing is looking pretty decent.”
Kiesel said he bought a house in Newport Beach, California, where Pimco is based. Today he published a credit market note titled “Back In” on the firm’s website in which he writes, “I’m not sure U.S. housing prices have bottomed -- only time will tell -- but there are many more positives today than there were six years ago when I sold my house.”
Home prices that have fallen 35 percent from their mid-2006 peak and mortgage rates of less than 4 percent are helping make it a good time to buy, said Kiesel, who is global head of the corporate bond portfolio management group at Pimco. Other signs the housing market is turning around include foreclosure filings dropping to levels last seen in 2007 and sales of new and existing homes that have begun to increase as rising rents boost the relative affordability of purchasing, he said.....
“I was one of the most negative on housing,” Kiesel said in a telephone interview. “I finally came to the conclusion housing is looking pretty decent.”
Kiesel said he bought a house in Newport Beach, California, where Pimco is based. Today he published a credit market note titled “Back In” on the firm’s website in which he writes, “I’m not sure U.S. housing prices have bottomed -- only time will tell -- but there are many more positives today than there were six years ago when I sold my house.”
Home prices that have fallen 35 percent from their mid-2006 peak and mortgage rates of less than 4 percent are helping make it a good time to buy, said Kiesel, who is global head of the corporate bond portfolio management group at Pimco. Other signs the housing market is turning around include foreclosure filings dropping to levels last seen in 2007 and sales of new and existing homes that have begun to increase as rising rents boost the relative affordability of purchasing, he said.....
05-07-2012, 09:36 AM
#236
Suzuka Master
I still feel like housing is in a bubble that's bound to burst again. The baby boomers are getting older, what are they going to do with the houses they have?
If the younger baby boomers follow the trend of the older ones, we are going to need fewer and smaller houses, which should cause the price of all those Mc Mansions to drop like a rock.
"Some 80 percent of Coldwell Banker's agents shared that clients at the upper end of the boomer age spectrum would like to trade down for a smaller home. "
Babyboomers will be vacating more homes than they occupy as they move into nursing homes, move in with their children, or pass away over the next two decades. They’re expected to release a net total of as many as 26 million housing units by 2030, according to the report. And young people might not be willing or able to buy new homes.
06-19-2012, 12:38 PM
#237
Senior Moderator
Trying to figure out what to do here guys.
Bought my condo in 2007 and its possibly the worst investment in my life. When I bought, I had plenty to pay for the condo, my expenses and have a good chunk for a rainy day. Five years later, the assessments have quadrupled, the building was built like shit requiring the owners to shell out for repairs, 3 special assessments later/in progress, BoA continuously f'ing up the escrow calculation my costs have risen and my rainy day fund has slowly been bled almost dry. Of course the place is now worth drastically less than what is owed on it, one or two units were foreclosed, some sold for way less than they were worth, etc.
Do I try a refi? Like a streamline refi?
Mortgage modification?
Short Sell?
Let it foreclose?
I'm really at a wits end and I'm not sure what the smart/right course of action is. I've trying to keep a hold on it but I'm seriously thinking about throwing in the towel otherwise things will just get worse. Heaven forbid we get another special assessment to fix another building issue.
Bought my condo in 2007 and its possibly the worst investment in my life. When I bought, I had plenty to pay for the condo, my expenses and have a good chunk for a rainy day. Five years later, the assessments have quadrupled, the building was built like shit requiring the owners to shell out for repairs, 3 special assessments later/in progress, BoA continuously f'ing up the escrow calculation my costs have risen and my rainy day fund has slowly been bled almost dry. Of course the place is now worth drastically less than what is owed on it, one or two units were foreclosed, some sold for way less than they were worth, etc.
Do I try a refi? Like a streamline refi?
Mortgage modification?
Short Sell?
Let it foreclose?
I'm really at a wits end and I'm not sure what the smart/right course of action is. I've trying to keep a hold on it but I'm seriously thinking about throwing in the towel otherwise things will just get worse. Heaven forbid we get another special assessment to fix another building issue.
06-19-2012, 01:05 PM
#238
Team Owner
You better consult a BK attorney before letting it get past due. My friend's brother-in-law who makes great money just decided to stop paying it and the lawyer told him he fucked up since he doesn't have a valid reason to stop paying it. Then again each state varies in BK laws.
06-19-2012, 01:10 PM
#239
Registered but harmless
Join Date: Aug 2005
Location: Los Angeles, CA
Age: 59
Posts: 14,845
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First, do you have any equity in the condo now, based on the current market price? The answer to that will determine if you can do a refi or mortgage modification.
You might want to talk to a rep from the bank that holds your note about the options, too-- the rep may provide some useful advice.
G/L!
06-19-2012, 01:21 PM
#240
Senior Moderator
You better consult a BK attorney before letting it get past due. My friend's brother-in-law who makes great money just decided to stop paying it and the lawyer told him he fucked up since he doesn't have a valid reason to stop paying it. Then again each state varies in BK laws.
Sorry to hear.
First, do you have any equity in the condo now, based on the current market price? The answer to that will determine if you can do a refi or mortgage modification.
You might want to talk to a rep from the bank that holds your note about the options, too-- the rep may provide some useful advice.
G/L!
First, do you have any equity in the condo now, based on the current market price? The answer to that will determine if you can do a refi or mortgage modification.
You might want to talk to a rep from the bank that holds your note about the options, too-- the rep may provide some useful advice.
G/L!
I am starting to despise BoA.