http://www.lewrockwell.com/orig8/whitney5.html
The Deflation Time Bomb
by Mike Whitney
Is there anyone who still does not understand that talk of ‘inflation’ by officialdom is just a red herring intended to distract us from the far more dangerous dragon of deflation?
~ Mike Shedlock, Mish’s Global Economic Trend Analysis
We are to about see how much George Bush really believes the “supply side” mumbo-jumbo he’s been spouting for the last seven years.
Showing posts with label bubble. Show all posts
Showing posts with label bubble. Show all posts
Sunday, January 20, 2008
Friday, January 18, 2008
WaMu accused of appraisal fraud
For those who think the banks were innocent bystanders and deserve to be bailed out:
http://money.cnn.com/2008/01/17/real_estate/wamu_lawsuit.moneymag/?postversion=2008011712
NEW YORK (Money) -- A former real estate appraiser for Washington Mutual is suing the bank, claiming she was blacklisted last year for providing a housing market forecast that was too gloomy.
Jeniffer Wertz, who is seeking unspecified damages, says WaMu stopped accepting her appraisals in mid-2007 a month after she reported that her local housing market in California was "declining."
http://money.cnn.com/2008/01/17/real_estate/wamu_lawsuit.moneymag/?postversion=2008011712
NEW YORK (Money) -- A former real estate appraiser for Washington Mutual is suing the bank, claiming she was blacklisted last year for providing a housing market forecast that was too gloomy.
Jeniffer Wertz, who is seeking unspecified damages, says WaMu stopped accepting her appraisals in mid-2007 a month after she reported that her local housing market in California was "declining."
Monday, November 26, 2007
How a housing boom turned into a bust
Housing woes have domino effect
By Kathy Chu with Sharon Silke Carty, Greg Farrell, Barbara Hagenbaugh, Edward Iwata, Noelle Knox and Adam Shell
If you haven't yet felt the impact of the nation's credit crisis, just wait. Chances are, you won't have to wait long.
So far, the turmoil may feel a bit remote for average people: Failed mortgage lenders. Gargantuan write-downs by banks. Foreclosures for people who couldn't really afford the mortgages they got.
What about the rest of us? Are we in danger? No one knows for sure, but quite likely, yes.
http://www.usatoday.com/money/economy/2007-11-25-credit-crunch_N.htm
A good article from USA Today with lots of charts.
By Kathy Chu with Sharon Silke Carty, Greg Farrell, Barbara Hagenbaugh, Edward Iwata, Noelle Knox and Adam Shell
If you haven't yet felt the impact of the nation's credit crisis, just wait. Chances are, you won't have to wait long.
So far, the turmoil may feel a bit remote for average people: Failed mortgage lenders. Gargantuan write-downs by banks. Foreclosures for people who couldn't really afford the mortgages they got.
What about the rest of us? Are we in danger? No one knows for sure, but quite likely, yes.
http://www.usatoday.com/money/economy/2007-11-25-credit-crunch_N.htm
A good article from USA Today with lots of charts.
U.S.Real Estate:How it affects your financial future
Here is an interesting YouTube video, there are several more by the same people listed on the right side of the page.
http://www.youtube.com/watch?v=I5kNJgLwD3Y&feature=related
http://www.youtube.com/watch?v=I5kNJgLwD3Y&feature=related
Friday, October 26, 2007
Foreclosures
I think I'll play with the foreclosure subject today. If you are planning on purchasing in Kingman or Mohave County, you need to do as much research as you can and foreclosures are an important part of the current market. I'll address the importance of this further down. I'll also add a couple of permanent links to our link section for foreclosure sites.
The Countrywide link also includes several other links on the left side of the page that go to other bank reo sites. All of the bank sites include addresses of the properties.
The foreclosure.com site is a pay site and does not include addresses without a subscription. However, the preforeclosures include a owner name and street name and using those the address can be looked up on the Mohave county tax accessor site.
The bank owned properties have added another "just pick a number" pricing level to an already "just pick a number" owner pricing level. If you don't do the research yourself, you are liable to buy a home that is as much as 100k more than another nearly identical house. I have found that the realtors don't seem to be following the foreclosure market and I would recommend doing your own research and not just blindly accepting your realtors word.
This is difficult to do with the information that the Mohave MLS supplies. Without addresses you are at the mercy of what the realtors choose to tell you about, unless you do your own research. You cannot just see a property on realtor.com and see that it is in your area of interest and contact the realtor.
I am lucky that I have access to a site that supplies the addresses for mls properties. It is a site that my realtor subscribes her buyers to. You can find out more by contacting either Sandy or Cecelia, whose sites are in the links on the right hand side. Both are very good at their jobs, not pushy sales types. They are just out to help you find and purchase a home without pressure. Sandy will help you find a home anywhere in Mohave County and will send you an email with each new listing that meets your criteria. Cecelia is a mortgage banker who can help you with a mortgage and also sends emails out with current interest and lending news.
The Mission Hills Estates subdivision is one that I can use to point out why knowledge is very important in this market. This subdivision was built in the spring of 2006. The houses are on 4000'+ lots. They are mostly 1869'+/- houses with some 1538'+/- floorplans. The original homes were priced from 239,000 to 299,000. A few of the smaller houses sold at the beginning. The builders apparently then rented out many of the remaining homes and the majority of the subdivision is still either rented or vacant. A California investor also purchased 5 of the larger homes for 289,000 in the summer of 2006.
Now fast forward to 2007. At least three of the smaller homes went into foreclosure and are now bank owned. Another two of the larger homes also went into foreclosure. All five of the investor homes were put on the market for 199,900 (90,000) less than he paid. None of them were sold even at the lower price and they have gone into foreclosure. Now here is where the bizarre pricing comes in.
Even though there were 1869' homes for sale for 199,900, one of the 1538' bank owned properties was originally priced by the bank at 229,000. They have since lowered it to 193,900. And as the 1869' homes go through foreclosure and become bank owned, the banks are listing them at a higher price than the owner listing.
There are six homes for sale as of today's listings. Two of the 1538' homes are 193,9000 and 195,500. The four 1869' homes are priced at 197,500, 199,900, 219,900, and 225,900. These houses are all the same, the two less expensive ones have never been lived in. The two more expensive ones may have been rentals.
Then we have the Rhodes Villas, another 69 home subdivision originally built and sold in late 2005. Nearly all were purchased by speculators and as they were completed were put back on the market for resale at an inflated price. A few were flipped for a profit in early 2006, but most owners ended up renting the homes out. By late 2006/early 2007, several were again put on the market. Some were priced at what they had paid, some were priced higher and some were priced lower. No real rhyme or reason to the "just pick a number" pricing.
Now fast forward to 2007. One of the original models was sold originally for 364,275 in 2005. The model was priced at about 140,000 above what the base prices were. The home went into foreclosure and is now bank owned. The bank has priced it at 199,000, it has 2192' and as of yet it has not sold. It has been listed for about 1.5 months. The second model home is still apparently owned by the original owner and may be rented. The third and final model home is owned by Rhodes and shows an original price of 299,824. It is currently on the market for 309,724 and has 1866'. The original non-model homes sold for 181, 825 to 255,875, depending on the upgrades added. The majority sold for around 181-205. A few are currently on the market, some priced at less than they paid in 2005.
There are many houses on the market priced at less than the current owners paid in 2005/2006. A house on our block is bank owned and priced at only $900. more than the last owner paid in 12/2004 and it has been on the market since August 8th.
As more and more foreclosures come on the market, opportunities to purchase homes for a reasonable amount should increase. The builder discounts and foreclosures should force the resale home prices down. Builders are continuing to grade and build homes, even as hundreds sit unsold on the market. Many home prices here doubled and tripled between late 2004 and early 2005 for no fundamental based reason. Lot prices went up as much as 20 times during the same period. The prices increased mainly due to a credit bubble and a frenzy of speculative buying. Prices are falling across the country and despite what the realtors tell you, it is not "different" in Mohave County.
If you are going to buy, do your own research. Do not depend on the advise of someone who's pay check depends on your purchase. Make sure you can afford the payments and don't depend on appreciation in the near future.
The Countrywide link also includes several other links on the left side of the page that go to other bank reo sites. All of the bank sites include addresses of the properties.
The foreclosure.com site is a pay site and does not include addresses without a subscription. However, the preforeclosures include a owner name and street name and using those the address can be looked up on the Mohave county tax accessor site.
The bank owned properties have added another "just pick a number" pricing level to an already "just pick a number" owner pricing level. If you don't do the research yourself, you are liable to buy a home that is as much as 100k more than another nearly identical house. I have found that the realtors don't seem to be following the foreclosure market and I would recommend doing your own research and not just blindly accepting your realtors word.
This is difficult to do with the information that the Mohave MLS supplies. Without addresses you are at the mercy of what the realtors choose to tell you about, unless you do your own research. You cannot just see a property on realtor.com and see that it is in your area of interest and contact the realtor.
I am lucky that I have access to a site that supplies the addresses for mls properties. It is a site that my realtor subscribes her buyers to. You can find out more by contacting either Sandy or Cecelia, whose sites are in the links on the right hand side. Both are very good at their jobs, not pushy sales types. They are just out to help you find and purchase a home without pressure. Sandy will help you find a home anywhere in Mohave County and will send you an email with each new listing that meets your criteria. Cecelia is a mortgage banker who can help you with a mortgage and also sends emails out with current interest and lending news.
The Mission Hills Estates subdivision is one that I can use to point out why knowledge is very important in this market. This subdivision was built in the spring of 2006. The houses are on 4000'+ lots. They are mostly 1869'+/- houses with some 1538'+/- floorplans. The original homes were priced from 239,000 to 299,000. A few of the smaller houses sold at the beginning. The builders apparently then rented out many of the remaining homes and the majority of the subdivision is still either rented or vacant. A California investor also purchased 5 of the larger homes for 289,000 in the summer of 2006.
Now fast forward to 2007. At least three of the smaller homes went into foreclosure and are now bank owned. Another two of the larger homes also went into foreclosure. All five of the investor homes were put on the market for 199,900 (90,000) less than he paid. None of them were sold even at the lower price and they have gone into foreclosure. Now here is where the bizarre pricing comes in.
Even though there were 1869' homes for sale for 199,900, one of the 1538' bank owned properties was originally priced by the bank at 229,000. They have since lowered it to 193,900. And as the 1869' homes go through foreclosure and become bank owned, the banks are listing them at a higher price than the owner listing.
There are six homes for sale as of today's listings. Two of the 1538' homes are 193,9000 and 195,500. The four 1869' homes are priced at 197,500, 199,900, 219,900, and 225,900. These houses are all the same, the two less expensive ones have never been lived in. The two more expensive ones may have been rentals.
Then we have the Rhodes Villas, another 69 home subdivision originally built and sold in late 2005. Nearly all were purchased by speculators and as they were completed were put back on the market for resale at an inflated price. A few were flipped for a profit in early 2006, but most owners ended up renting the homes out. By late 2006/early 2007, several were again put on the market. Some were priced at what they had paid, some were priced higher and some were priced lower. No real rhyme or reason to the "just pick a number" pricing.
Now fast forward to 2007. One of the original models was sold originally for 364,275 in 2005. The model was priced at about 140,000 above what the base prices were. The home went into foreclosure and is now bank owned. The bank has priced it at 199,000, it has 2192' and as of yet it has not sold. It has been listed for about 1.5 months. The second model home is still apparently owned by the original owner and may be rented. The third and final model home is owned by Rhodes and shows an original price of 299,824. It is currently on the market for 309,724 and has 1866'. The original non-model homes sold for 181, 825 to 255,875, depending on the upgrades added. The majority sold for around 181-205. A few are currently on the market, some priced at less than they paid in 2005.
There are many houses on the market priced at less than the current owners paid in 2005/2006. A house on our block is bank owned and priced at only $900. more than the last owner paid in 12/2004 and it has been on the market since August 8th.
As more and more foreclosures come on the market, opportunities to purchase homes for a reasonable amount should increase. The builder discounts and foreclosures should force the resale home prices down. Builders are continuing to grade and build homes, even as hundreds sit unsold on the market. Many home prices here doubled and tripled between late 2004 and early 2005 for no fundamental based reason. Lot prices went up as much as 20 times during the same period. The prices increased mainly due to a credit bubble and a frenzy of speculative buying. Prices are falling across the country and despite what the realtors tell you, it is not "different" in Mohave County.
If you are going to buy, do your own research. Do not depend on the advise of someone who's pay check depends on your purchase. Make sure you can afford the payments and don't depend on appreciation in the near future.
Wednesday, October 24, 2007
Arizona Housing Links
October 21, 2007
Homebuilders offer incentives, discounts
Misty Williams, Tribune
http://www.tribunehomefinder.com/story/100085
**********
New-home market flooded on outskirts as builders, owners compete
By Christie Smythe and Lourdes Medrano
Arizona DAily Star
Tucson, Arizona Published: 10.21.2007
When the market was at its peak, some of the hottest areas were northwest, southeast and southwest of the city. But now, buyers no longer line up to buy homes in outlying subdivisions. Instead, builders slash prices, pack on incentives and still are left with unsold spec homes and empty lots.
In many cases, homeowners trying to sell properties in newer developments are finding they can't compete with builders' rock-bottom prices.
Tucson housing market consultant John Strobeck, of Bright Future Business Consultants, declined to comment for this story. But previously, in describing his monthly sales report, the Southern Arizona Housing Market Letter, Strobeck said the market is suffering from an oversupply of both new and resale homes, and conditions might not improve until 2010.
http://www.azstarnet.com/dailystar/207396
**********
Many Valley homeowners pressured or tricked into bad loans, experts say
Catherine Reagor
The Arizona Republic
Oct. 21, 2007 12:00 AM
Arizona is second only to Nevada for subprime loans, and the mortgage industry is bleeding billions of dollars from losses on those types of loans. Interest rates on the biggest block of subprime adjustable-rate mortgages are set to climb by the end of the year, prompting market watchers to predict the largest jump in foreclosures to happen in early 2008.
Loose lending guidelines and speculators fueled the housing boom in 2004 and 2005.
Home prices across metropolitan Phoenix shot up 50 percent because of speculator-driven bidding wars. With little regulation in Arizona's mortgage industry, loan officers flocked to the state offering more creative, and often riskier, financing to any buyer who couldn't otherwise afford the rising home prices.
http://www.azcentral.com/arizonarepublic/news/articles/1021bad-loans1021.html
Homebuilders offer incentives, discounts
Misty Williams, Tribune
http://www.tribunehomefinder.com/story/100085
**********
New-home market flooded on outskirts as builders, owners compete
By Christie Smythe and Lourdes Medrano
Arizona DAily Star
Tucson, Arizona Published: 10.21.2007
When the market was at its peak, some of the hottest areas were northwest, southeast and southwest of the city. But now, buyers no longer line up to buy homes in outlying subdivisions. Instead, builders slash prices, pack on incentives and still are left with unsold spec homes and empty lots.
In many cases, homeowners trying to sell properties in newer developments are finding they can't compete with builders' rock-bottom prices.
Tucson housing market consultant John Strobeck, of Bright Future Business Consultants, declined to comment for this story. But previously, in describing his monthly sales report, the Southern Arizona Housing Market Letter, Strobeck said the market is suffering from an oversupply of both new and resale homes, and conditions might not improve until 2010.
http://www.azstarnet.com/dailystar/207396
**********
Many Valley homeowners pressured or tricked into bad loans, experts say
Catherine Reagor
The Arizona Republic
Oct. 21, 2007 12:00 AM
Arizona is second only to Nevada for subprime loans, and the mortgage industry is bleeding billions of dollars from losses on those types of loans. Interest rates on the biggest block of subprime adjustable-rate mortgages are set to climb by the end of the year, prompting market watchers to predict the largest jump in foreclosures to happen in early 2008.
Loose lending guidelines and speculators fueled the housing boom in 2004 and 2005.
Home prices across metropolitan Phoenix shot up 50 percent because of speculator-driven bidding wars. With little regulation in Arizona's mortgage industry, loan officers flocked to the state offering more creative, and often riskier, financing to any buyer who couldn't otherwise afford the rising home prices.
http://www.azcentral.com/arizonarepublic/news/articles/1021bad-loans1021.html
Thursday, October 18, 2007
More California Housing
http://www.mercurynews.com/ci_7175582?nclick_check=1
Big winners, losers at auction of new Manteca homes
THOSE WHO GOT HOUSES ARE ECSTATIC, PAYING FAR LESS THAN CURRENT OWNERS
By Julia Prodis SulekMercury News
When homeowner Dave Cantrell walked into the hotel ballroom Saturday where Anderson Homes was auctioning off one-third of the brand-new houses in his Manteca subdivision, he tried to be optimistic.
"I'm feeling my worst fears right now," said Cantrell, who estimated that the auction devalued his neighbors' homes by roughly $200,000 each compared with what many of them paid a year ago. "I lost a quarter million dollars in value. I'm screwed."
Cantrell bought his home a year ago for $670,000 (not including the $90,000 he paid to install a pool and miniature golf course). The winning bidder Saturday of an identical home five doors down the street paid $391,000 - 38 percent less than what he paid.
These houses are not in foreclosure. They are brand-new ones that Anderson Homes couldn't sell no matter how many free upgrades it offered.
**********
http://www.recordnet.com/apps/pbcs.dll/article?AID=/20071016/A_NEWS/710160320/-1/A_BIZ
Stockton agent offering foreclosure bus tours
By Bruce Spence
Record Staff Writer
October 16, 2007 6:00 AM
STOCKTON - It's not a magic bus, just a vividly marked one - REPO HOME TOUR.COM - that real estate agent Cesar Dias hopes will work some magic for him in a bleak home-sales market.
Big winners, losers at auction of new Manteca homes
THOSE WHO GOT HOUSES ARE ECSTATIC, PAYING FAR LESS THAN CURRENT OWNERS
By Julia Prodis SulekMercury News
When homeowner Dave Cantrell walked into the hotel ballroom Saturday where Anderson Homes was auctioning off one-third of the brand-new houses in his Manteca subdivision, he tried to be optimistic.
"I'm feeling my worst fears right now," said Cantrell, who estimated that the auction devalued his neighbors' homes by roughly $200,000 each compared with what many of them paid a year ago. "I lost a quarter million dollars in value. I'm screwed."
Cantrell bought his home a year ago for $670,000 (not including the $90,000 he paid to install a pool and miniature golf course). The winning bidder Saturday of an identical home five doors down the street paid $391,000 - 38 percent less than what he paid.
These houses are not in foreclosure. They are brand-new ones that Anderson Homes couldn't sell no matter how many free upgrades it offered.
**********
http://www.recordnet.com/apps/pbcs.dll/article?AID=/20071016/A_NEWS/710160320/-1/A_BIZ
Stockton agent offering foreclosure bus tours
By Bruce Spence
Record Staff Writer
October 16, 2007 6:00 AM
STOCKTON - It's not a magic bus, just a vividly marked one - REPO HOME TOUR.COM - that real estate agent Cesar Dias hopes will work some magic for him in a bleak home-sales market.
California Housing Articles
Some of these articles are on Riverside and San Bernardino counties. The closest counties to Mohave in both distance and weather. They are usually the first to fall in Cali bubbles and usually in the group that is hardest hit with declines.
http://www.pe.com/localnews/inland/stories/PE_News_Local_S_dataquick17.3e070b0.html
Inland housing sales plummet
12:23 PM PDT on Wednesday, October 17, 2007
By LESLIE BERKMAN The Press-Enterprise
Housing sales fell at a record rate and home prices declined by double digits last month in Riverside and San Bernardino counties.
**********
http://www.signonsandiego.com/news/metro/20071017-9999-1n17housing.html
Housing slump persists
Credit crunch fuels drop in sales, prices in 6-county region
By Roger Showley
UNION-TRIBUNE STAFF WRITER
October 17, 2007
Home sales throughout Southern California plunged last month to their lowest levels in more than a decade, with prices falling in most areas as well, DataQuick Information Systems reported yesterday.
**********
http://www.whittierdailynews.com/news/ci_7198530
Region home sales lowest in 2 decades
Difficulties getting jumbo loans called major factor in downturn
By Michael Rappaport Staff Writer
Blame it on jumbo.
No, not the 1962 Doris Day/Jimmy Durante movie about a lovable elephant.
These jumbos are the mortgages required when a home loan exceeds federal lending limits, and they're a drag on the California housing market.
September home sales in the Southland were at their lowest level in more than 20 years, DataQuick Information Services reported Tuesday, and the difficulty in getting jumbo mortgages was a big factor.
Actually, the sales total of 12,455 homes in the region was the lowest for any month, edging the 12,459 sales in February 1995.
The biggest price drops came in San Bernardino County, off 11 percent to $325,000, and Riverside County, off 10.8 percent to $375,500.
"Things are clearly getting worse," said Christopher Thornberg, a principal with Beacon Economics. "It's going to remain terrible for some time."
**********
http://www.dailynews.com/news/ci_7198220
Lenders that repossessed property slashing prices
BY GREGORY J. WILCOX and RICK COCA, Staff Writers
Article Last Updated: 10/17/2007 08:51:31 AM PDT
Looking to bottom feed in this depressed real estate market?
Try finding a foreclosure because you might snap it up for about 20 percent or more under its recent market value.
Take a foreclosed home in Winnekta on the market for $404,900. The asking price is 24 percent lower than what the former owner paid in June of 2006, according to Realtor Steve Smallson.
70 percent of homeowners who are foreclosed on bought their homes between 2003 and 2005. Homeowners who bought during this period and at the peak of the housing market are likely to be in a negative equity position now.
**********
http://www.latimes.com/news/printedition/front/la-fi-homes17oct17,1,6588480,full.story?coll=la-headlines-frontpage&ctrack=1&cset=true
Southland home sales and prices plummet
Southland purchases in September fall nearly 50% from a year earlier. Prices drop overall, but L.A. County's rise 1.2%.
By Peter Y. Hong and Maura Reynolds, Los Angeles Times Staff Writers October 17, 2007
Home sales in Southern California plummeted in September to a two-decade low, and a rash of grim housing-market assessments Tuesday suggested the worst is yet to come."We're on our way down and still picking up speed," said Christopher Thornberg, a Los Angeles-based economist who four years ago warned that the pace of housing price gains in the region couldn't be sustained.
Garden Grove real estate broker Patrick Schwier, who specializes in apartment buildings, said he had sold 70% fewer buildings this year compared with the same period in 2006, and recently saw one sale fall through when the potential buyer's loan application was rejected.
Schwier said he saw two more years of falling sales and prices.
"Prices were too inflated when credit was easier," he said, and now home prices, though they've been slipping, still "don't make sense. And they will drop until they make sense."
**********
http://www.ocregister.com/money/price-percent-down-1894419-last-sales
Tuesday, October 16, 2007
Home prices fall, but many still can't buy
Orange County median falls below $600,000, but agents still have trouble moving inventory.
By JEFF COLLINS
The Orange County Register
The median price of an Orange County home fell 9.5 percent from the year before, dropping to $570,000. It is the first month in 2 ½ years that the median price – or the price at the midpoint of all sales – has dropped below $600,000.
That price was down $75,000, or nearly 12 percent, from the peak price of $645,000 reached in June. In the last down cycle, the drop from the peak to bottom was 16.3 percent from July 1991 to January 1996, according to DataQuick.
http://www.pe.com/localnews/inland/stories/PE_News_Local_S_dataquick17.3e070b0.html
Inland housing sales plummet
12:23 PM PDT on Wednesday, October 17, 2007
By LESLIE BERKMAN The Press-Enterprise
Housing sales fell at a record rate and home prices declined by double digits last month in Riverside and San Bernardino counties.
**********
http://www.signonsandiego.com/news/metro/20071017-9999-1n17housing.html
Housing slump persists
Credit crunch fuels drop in sales, prices in 6-county region
By Roger Showley
UNION-TRIBUNE STAFF WRITER
October 17, 2007
Home sales throughout Southern California plunged last month to their lowest levels in more than a decade, with prices falling in most areas as well, DataQuick Information Systems reported yesterday.
**********
http://www.whittierdailynews.com/news/ci_7198530
Region home sales lowest in 2 decades
Difficulties getting jumbo loans called major factor in downturn
By Michael Rappaport Staff Writer
Blame it on jumbo.
No, not the 1962 Doris Day/Jimmy Durante movie about a lovable elephant.
These jumbos are the mortgages required when a home loan exceeds federal lending limits, and they're a drag on the California housing market.
September home sales in the Southland were at their lowest level in more than 20 years, DataQuick Information Services reported Tuesday, and the difficulty in getting jumbo mortgages was a big factor.
Actually, the sales total of 12,455 homes in the region was the lowest for any month, edging the 12,459 sales in February 1995.
The biggest price drops came in San Bernardino County, off 11 percent to $325,000, and Riverside County, off 10.8 percent to $375,500.
"Things are clearly getting worse," said Christopher Thornberg, a principal with Beacon Economics. "It's going to remain terrible for some time."
**********
http://www.dailynews.com/news/ci_7198220
Lenders that repossessed property slashing prices
BY GREGORY J. WILCOX and RICK COCA, Staff Writers
Article Last Updated: 10/17/2007 08:51:31 AM PDT
Looking to bottom feed in this depressed real estate market?
Try finding a foreclosure because you might snap it up for about 20 percent or more under its recent market value.
Take a foreclosed home in Winnekta on the market for $404,900. The asking price is 24 percent lower than what the former owner paid in June of 2006, according to Realtor Steve Smallson.
70 percent of homeowners who are foreclosed on bought their homes between 2003 and 2005. Homeowners who bought during this period and at the peak of the housing market are likely to be in a negative equity position now.
**********
http://www.latimes.com/news/printedition/front/la-fi-homes17oct17,1,6588480,full.story?coll=la-headlines-frontpage&ctrack=1&cset=true
Southland home sales and prices plummet
Southland purchases in September fall nearly 50% from a year earlier. Prices drop overall, but L.A. County's rise 1.2%.
By Peter Y. Hong and Maura Reynolds, Los Angeles Times Staff Writers October 17, 2007
Home sales in Southern California plummeted in September to a two-decade low, and a rash of grim housing-market assessments Tuesday suggested the worst is yet to come."We're on our way down and still picking up speed," said Christopher Thornberg, a Los Angeles-based economist who four years ago warned that the pace of housing price gains in the region couldn't be sustained.
Garden Grove real estate broker Patrick Schwier, who specializes in apartment buildings, said he had sold 70% fewer buildings this year compared with the same period in 2006, and recently saw one sale fall through when the potential buyer's loan application was rejected.
Schwier said he saw two more years of falling sales and prices.
"Prices were too inflated when credit was easier," he said, and now home prices, though they've been slipping, still "don't make sense. And they will drop until they make sense."
**********
http://www.ocregister.com/money/price-percent-down-1894419-last-sales
Tuesday, October 16, 2007
Home prices fall, but many still can't buy
Orange County median falls below $600,000, but agents still have trouble moving inventory.
By JEFF COLLINS
The Orange County Register
The median price of an Orange County home fell 9.5 percent from the year before, dropping to $570,000. It is the first month in 2 ½ years that the median price – or the price at the midpoint of all sales – has dropped below $600,000.
That price was down $75,000, or nearly 12 percent, from the peak price of $645,000 reached in June. In the last down cycle, the drop from the peak to bottom was 16.3 percent from July 1991 to January 1996, according to DataQuick.
The Latte Era Grinds Down
http://www.newsweek.com/id/43345
Average Americans were living like the Riches, thanks to easy credit and the real-estate bubble. Now they're trading down instead of trading up.
By Daniel Gross NEWSWEEK
Oct 22, 2007 Issue
Average Americans were living like the Riches, thanks to easy credit and the real-estate bubble. Now they're trading down instead of trading up.
By Daniel Gross NEWSWEEK
Oct 22, 2007 Issue
Monday, August 27, 2007
Your House Is Worth Less? Good
http://www.time.com/time/magazine/article/0,9171,1655723,00.html
Commentary
Your House Is Worth Less? Good
Thursday, Aug. 23, 2007 By MICHAL KINSLEY
The last time we had this feeling of financial vertigo was when the Internet bubble popped seven years ago. But this is much worse: the value of our homes is collapsing. For generations, rising home prices have been central to our general sense of well-being.
So why is the real estate collapse a good thing? First, because the collapse of any financial bubble can be interpreted as a morality play: greed gets its comeuppance.
Commentary
Your House Is Worth Less? Good
Thursday, Aug. 23, 2007 By MICHAL KINSLEY
The last time we had this feeling of financial vertigo was when the Internet bubble popped seven years ago. But this is much worse: the value of our homes is collapsing. For generations, rising home prices have been central to our general sense of well-being.
So why is the real estate collapse a good thing? First, because the collapse of any financial bubble can be interpreted as a morality play: greed gets its comeuppance.
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