Forecast of Housing Foreclosures for the Next 5 Years
This is not about inciting fear. It’s about providing the accurate numbers. We have been forecasting these downturns for the past 3 years. Sub Prime wasn’t a surprise and this next wave shouldn’t be either. You can’t LEND on the honor system. Like it or not… this info is accurate.
In this video they are saying now what they should have been saying years ago. and contrary to popular belief it is not the effect of the whole Fannie/Feddie thing. It is the effect of repealing acts such as the Glass-Steagal, among others.
Bill Clinton repealed the Glass-Steagal Act. He still defends that move. It is not clear whether that contributed to the banking crisis. It may have it may not have. The primary cause of the banking crisis was the crash of the housing industry which was brought to us by the Community Reinvestment Act.
Let’s not ignore the two primary individuals who recommended the Glass-Steagal Act repeal to Clinton. Our present Secretary of the Treasury, Timothy Geithner and the infamous Larry Summers. Both powerful players in Obama’s Administration. Connect the dots. Wake Up America.
San Diego home listings
Housing Bottom … Warton Prof. Says Not Yet!
Wharton School Professor, Susan Watcher talks about the housing market. This is a very good take on our current real estate market. The 2009 real estate market bottom crowd should throw in the towel and start perfecting their 2010 market bottom sound bites.
It always amazes me how real estate industry spokespersons are constantly interviewed and quoted about the latest news. Isn’t it obvious that they always say a variation of the same thing? “It’s always a great time to buy real estate!” … “High interest rates, get in now, before they move higher.” … ” Falling home values, great values, no one can pick the bottom, bargains abound!” … ” This is Southern California, real estate values ALWAYS move higher!”
San Diego MLS listings
San Diego Housing Recovery?
San Diego housing
Considering some San Diego home prices are off 40%+, large home buyer credits are available, home interest rates are near 40 year lows, and the seasonably high time to purchase real estate is here, a small uptick in median San Diego home prices should not be a surprise.
But, a number of builders report that any recovery in housing demand seen over the past few months is predominantly coming from the low end of the market, where government programs and tax incentives for first times buyers coupled with very low interest rates have brought out buyers. However, in the upper end of the market, rising unemployment (which likely will continue for some time), a huge oversupply of units, tougher mortgage terms and higher rates for jumbo mortgages (above $470,000) make it highly likely that more pain is ahead.
The only things that will lead the housing market to recover are real economic growth and inflation. Both of these will tend to increase nominal income of potential buyers and make housing at any given price level more affordable. Inflation tends to create higher interest rates which will create higher mortgage payments(as well as all sorts of other undesirable effects) so it is somewhat of a double edged sword. We really have to focus on getting the economy growing again – if we succeed, the housing market will take care of itself; if we fail, there is really no way the housing market will recover.
San Diego home listings
San Diego Housing – Is The Pain Over?
San Diego California real estate
We know a round of massive foreclosure ( Real Estate Market Bottom or Wishful Thinking?) is just starting, we know that unemployment is still increasing , we know we are probably in a growthless recovery (if any), etc. I think the simple conclusion is that San Diego housing has not bottomed yet and will not bottom this year.
The Case Shiller index of home prices is only down to 2002 or 2003 whereas the S&P last March was back to 1997 level. Given the bubble we have gone through in housing, I don’t see why the bursting of it would only get us back to 2002-2003.
This means more and more housing equity wealth is evaporating, thus damaging more and more retirement dreams and hopes of college education for the kids.
San Diego home listings
Downtown San Diego Real Estate … Bargains?
downtown San Diego condominiums
Recently, there was an interesting advertisement for a high-rise downtown San Diego real estate condo development in San Diego Union Tribune which illustrates just how tough it is to sell a downtown condo these days.
This particular development is offering a 7% discount on their already reduced prices. More importantly, they’re throwing in three years of homeowners association dues included. Now, when one considers that the average downtown high-rise monthly homeowners dues run way north of $500 a month, this is indeed a substantial incentive. Risky purchase or once-in-a-lifetime bargain … You decide!
downtown San Diego real estate
Condo Association Home Foreclosures on the Rise
For thousands of Americans struggling through the recession, it’s not the bank that’s threatening to foreclose, it’s the homeowner association. It’s a clause that caught one Texas couple who owe $1,800 in fees.
If you are in trouble with your condo association, the best advice is to talk with a real estate attorney ASAP! A good starting point to locate a real estate lawyer, would be San Diego attorneys, a directory for San Diego California lawyers and also links to other legal directories.