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Adam
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http://www.economist.com/displaystory.cfm?story_id=11465476
America's house prices are falling even faster than during the Great Depression
AS HOUSE prices in America continue their rapid descent, market-watchers are having to cast back ever further for gloomy comparisons. The latest S&P/Case-Shiller national house-price index, published this week, showed a slump of 14.1% in the year to the first quarter, the worst since the index began 20 years ago. Now Robert Shiller, an economist at Yale University and co-inventor of the index, has compiled a version that stretches back over a century. This shows that the latest fall in nominal prices is already much bigger than the 10.5% drop in 1932, the worst point of the Depression. And things are even worse than they look. In the deflationary 1930s house prices declined less in real terms. Today inflation is running at a brisk pace, so property prices have fallen by a staggering 18% in real terms over the past year. |
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Tue Jun 03, 2008 12:15 pm |
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Demeralda
F L I N T O I D
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| Goes hand in hand with the concentration of wealth that led to the Great Depression. |
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I'm no model lady. A model's just an imitation of the real thing. - Mae West |
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Tue Jun 03, 2008 1:25 pm |
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Adam
F L I N T O I D
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Tue Jun 03, 2008 2:02 pm |
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Ryan Eashoo
F L I N T O I D
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Its very depressing, the values in the Flint area are falling even faster.
quote:
Adam schreef:
http://www.economist.com/displaystory.cfm?story_id=11465476
America's house prices are falling even faster than during the Great Depression
AS HOUSE prices in America continue their rapid descent, market-watchers are having to cast back ever further for gloomy comparisons. The latest S&P/Case-Shiller national house-price index, published this week, showed a slump of 14.1% in the year to the first quarter, the worst since the index began 20 years ago. Now Robert Shiller, an economist at Yale University and co-inventor of the index, has compiled a version that stretches back over a century. This shows that the latest fall in nominal prices is already much bigger than the 10.5% drop in 1932, the worst point of the Depression. And things are even worse than they look. In the deflationary 1930s house prices declined less in real terms. Today inflation is running at a brisk pace, so property prices have fallen by a staggering 18% in real terms over the past year.
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Flint Michigan Resident, Tax Payer, Flint Nutt - Local REALTOR - Activist. www.FlintTown.com |
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Tue Jun 03, 2008 2:59 pm |
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andi03
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Yippers a house just near us would have gone for about 245K about 6 years ago, now it's in foreclosure, the garbage truck is there as we speak and the asking price is 169k......WOW.  |
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Build a bridge and get over it! |
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Tue Jun 03, 2008 3:17 pm |
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Demeralda
F L I N T O I D
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Well, la di da, don't *YOU* live in the fancy schmancy neighborhood, Andi!
I'll get the last laugh though when your new neighbors are...
RATS. |
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I'm no model lady. A model's just an imitation of the real thing. - Mae West |
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Tue Jun 03, 2008 3:33 pm |
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andi03
F L I N T O I D
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I may live in one, but sure as sh*t, I'm the hillbilly out of the bunch...the cars are officially paid for, I spray painted my son's bike that was once my daughter's, buy my clothes at Goodwill, send my kids to public schools. Hell, I even cut my own dead ash trees down with my own chainsaw...
The rebel in me? I drink Bud out of a can.......oooaahhhh. |
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Build a bridge and get over it! |
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Tue Jun 03, 2008 3:38 pm |
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Demeralda
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LOL well that's one thing you'll never see me do, drink bud out of a can. I have plenty of other rebellious acts in me, though.
And I shouldn't make fun of your new neighbors, I already have rats living next door. It's a daycare center. |
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I'm no model lady. A model's just an imitation of the real thing. - Mae West |
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Tue Jun 03, 2008 3:55 pm |
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andi03
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****I already have rats living next door. ****
I do believe that they are of the "rug" variety. The well known rug-us rat-us when exposed to daylight will display the following characteristics: incessant screaming, fighting, crying, and believe it or not, bike riding.
Sometimes they will exhibit nocturnal behaviour, especially in it's infant stage. To quell this behaviour, it is recommended that a shot of fine whiskey be poured into a shot glass. Dab some of the libation on your index finger, rub it on the healthy pink gums of the infant rug-us rat-us. Then the remainder of the libation shall be consumed by the adult of the species, in a fast manner. This will ensure the survival of the species. |
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Build a bridge and get over it! |
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Tue Jun 03, 2008 4:23 pm |
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Adam
F L I N T O I D
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Tue Jun 03, 2008 5:59 pm |
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twotap
F L I N T O I D
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quote:
Well, la di da, don't *YOU* live in the fancy schmancy neighborhood, Andi!
Not to worry, When Barry and Micheles great socialist equlizin even it up time for
change
 plan kicks in their wont be no ladida hotitodis Whiteys left even the lib ones will be put in their place. Well unless your one of Barackos upper echelon elitist chosen Klan. Like themselves of course.  |
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Tue Jun 03, 2008 6:15 pm |
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Adam Ford
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Unfortunately things should get worse.
http://news.yahoo.com/s/ap/20080605/ap_on_bi_ge/home_foreclosures
WASHINGTON - Home foreclosures and late payments set records over the first three months of the year and are expected to keep rising, stark signs of the housing crisis' mounting damage to homeowners and the economy.
The latest snapshot of the mortgage market, released Thursday, showed that the proportion of mortgages that fell into foreclosure soared to 0.99 percent in the January-through-March period. That surpassed the previous high of 0.83 percent over the last three months in 2007.
The report by the Mortgage Bankers Association also found that more homeowners slipped behind on their monthly payments.
The delinquency rate jumped to 6.35 percent in the first quarter, compared with 5.82 percent for the three months earlier. Payments are considered delinquent if they are 30 or more days past due.
Both the rate of new foreclosures and late payments were the highest on record going back to 1979.
Jay Brinkmann, the association's vice president of research and economics, told The Associated Press that the slump in house prices was the biggest factor for rising foreclosures and late payments.
With prices expected to keep dropping, foreclosures and late payments "are going to continue to go up" in the months ahead, he said.
Homeowners with tarnished credit who have subprime adjustable-rate loans took the hardest hits. Foreclosures and late payments for these borrowers also swelled to all-time highs in the first quarter.
The percentage of subprime adjustable-rate mortgages that started the foreclosure process climbed to 6.35 percent. The rate was 5.29 percent in fourth quarter, the previous high. Late payments rose to 22.07 percent from 20.02 percent, the previous high.
The association's survey covers just over 45 million home loans.
More problems also cropped up with loans to more creditworthy borrowers.
The percentage of such loans falling into foreclosure was 0.54 percent, compared with 0.41 percent at the end of last year. Late payment rose to 3.71 percent, compared with 3.24 percent.
The numbers were higher for prime borrowers with adjustable rate mortgages. The proportion of those loans falling into foreclosures jumped to 1.55 percent from 1.06 percent. The delinquency rate rose to 6.78 percent, compared with 5.51 percent.
"The number one problem is the drop in home prices," Brinkmann said. Declining prices, especially in newer built areas, "are hurting people's ability to recover when they run into trouble — a divorce or loss of job," he said. "In other days, you could sell the home. But because home prices have fallen so much, in many of those cases, the homes are going into foreclosure."
California, Florida, Nevada and Arizona accounted for 89 percent of the total increase in new home foreclosures, he said. Those are places where prices have fallen sharply and there was a lot of home building, creating too much supply, Brinkmann said.
After a five-year boom, the housing market fell into a deep slump two years ago. That dragged down sales, and prices with it. As the value of homes plummeted, many newer homeowners found themselves owing more on their mortgages than their homes were worth.
Homeowners with adjustable-rate mortgages were clobbered when their initially low rates reset to much higher ones. That made it difficult, if not impossible, to keep up with monthly mortgage payments.
As foreclosures and late payments climbed, financial companies took multibillion losses when their investments in mortgage-backed securities soured. A credit crisis erupted and spread, crimping other types of financing. The fallout plunged Wall Street in turmoil, disrupting the normal functioning of markets.
All those troubles have pushed the economy to the brink of a recession, if the country isn't already in one. Consumers and business have tightened their spending. Employers have cut more than a quarter-million jobs in the first four months of this year.
To bolster the economy, the Federal Reserve made aggressive interest rate cuts. That has helped homeowners facing rate resets on their adjustable-rate mortgages. But with inflation on the rise, Fed Chairman Ben Bernanke this week sent his strongest signal yet that the central bank's rate-cutting campaign started that started in September is coming to an end.
The Bush administration has taken steps to help distressed homeowners. It has urged lenders to freeze rates for some homeowners and encouraged lenders to rework mortgage terms so troubled borrowers can stay in their homes.
A congressional plan that includes a foreclosure prevention program has stalled as lawmakers figure out how to pay for it.
The government would back as much as $300 billion in new loans to help certain borrowers refinance into cheaper, fixed-rate loans. Mortgage holders would have to agree to take a substantial loss on the existing loans; borrowers would have to show they could afford the new mortgage and share future proceeds with the government.
The House passed its version last month. Senate leaders say they want to vote by July.
Groups representing builders and real estate agents want incentives, such as a $7,500 temporary tax credit for first-time home buyers, to support the market.
"Policies that stimulate home purchases in the immediate future can pay huge dividends and a temporary home buyer tax credit provides the most bang for the buck," Joe Robson, a home builder from Tulsa, Okla., said in prepared remarks at a House hearing. |
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Thu Jun 05, 2008 12:11 pm |
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Adam Ford
F L I N T O I D
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Fri Jun 06, 2008 8:20 am |
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Adam Ford
F L I N T O I D
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http://money.cnn.com/2008/06/05/news/economy/foreclosure/index.htm?postversion=2008060514
NEW YORK (CNNMoney.com) -- More than one million homes are now in foreclosure, the highest rate ever recorded, according to a trade group which warned Thursday that number will continue to climb.
The Mortgage Bankers Association's first quarter report showed that a record 2.5% of all loans being serviced by its members are now in foreclosure, which works out to about 1.1 million homes. That's up from the 2% of loans, or about 938,000 homes, that were in foreclosure at the end of 2007.
The report also showed that 448,000 homes, or about 1% of loans being serviced, began the foreclosure process during the first quarter. That's up from about 382,000 homes, or 0.83%, that entered foreclosure in the last three months of 2007. |
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Fri Jun 06, 2008 9:36 am |
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kaypurdue
Guest
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| Kinda makes me glad I'm still a renter. |
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Fri Jun 06, 2008 11:10 am |
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