Housing Recovery – Not This Year!
Warren Buffett
Will the housing market recover this year? Yes, if you believe the ‘industry’ line. Then again, according to the “industry,” it’s been a good time to buy,for the last three or four years! With the government’s big homeowner credits, a slight pick-up in the lower end of the market in San Diego ,and historic low interest rates, the end of equity devastation is relegated to bad dream status.
The Country’s Largest Landlord
Of all the loans that have been recast through programs designed to shore up values, 57% are now in default.
Also, 95% of all new mortgages are government guaranteed.
Not only will 2010 see home values plummet, but the government will end up owning massive numbers of homes and will become the country’s largest landlord.
Just perhaps, if the government would just let the real estate solve it’s problems, we would be at a real bottom and not approaching a second down wave.
San Francisco California real estate
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 Real Estate … Will Low Interest Rates Help?
Will historically low interest rates be the key to turning around or putting a bottom in place for the San Diego housing bust?
Mortgage rates are near their lowest levels in nearly 40 years. Plus, the government wants to offer new borrowers a 4.5% mortgage rate as an incentive.
Ivy Zelman, chief executive of housing-research firm Zelman & Associates, estimates that nationally, even with such a low rate, only about 67% of U.S. households can afford a house. Homeownership was nearly 68% in the third quarter, according to the Census Bureau, implying there is virtually no untapped demand for homes.
Cramer Calls the Bottom in Real Estate Market
Jim Cramer is the host of CNBC's "Mad Money" and co-founder of TheStreet.com. Cramer has also been a contributor to New York magazine, and an occasional contributor to Time magazine. The outspoken stock market analyst said last week that the bottom in the housing decline will occur during the 3rd quarter of 2009.
Mr. Cramer reached his conclusion by combining a long list of signs that seem to show the market is stabilizing. These factors are an increase in sales volume brought on by falling prices, a slowdown in new home construction, combined with US government efforts to help troubled homeowners and new population growth that should spur household creation.
A few of our past popular posts concerning a housing bottom were:
Greenspan … Housing Bottom In Sight
San Diego Real Estate Market Bottom?
2% Increase In Existing Home Sales For May
Housing Slump Will Go Continue at least To 2009
Southern California Highest Sales … Prices Still Falling
DataQuick Information Systems just reported that across the six counties of Southern California it was the highest level of sales in almost a year. The median sales price in July was $260,000 in Riverside County and $230,000 in San Bernardino County. Both represent declines of about $10,000 to $15,000 in the last month.
John Walsh, MDA DataQuick president said: "What we're looking at is a fire sale of properties in newer affordable neighborhoods that were bought or refinanced near the price peak with lousy mortgages."
Also, First American CoreLogic reported that its monthly home price index fell 10.7 percent in June, as the U.S. housing market copes with a historic slump.
The biggest drop was seen in the Los Angeles area, where prices fell by 26.5 percent. Prices fell by 26.1 percent in the Riverside, Calif., area.
Drops of more than 20 percent were seen in areas in that were flooded with speculators during the housing boom and have been hit hardest by the bust.
Those include: Oakland and San Diego, Calif, Phoenix, Las Vegas, Miami and the Cape Coral-Fort Myers and Fort Lauderdale-Pompano Beach areas in Florida. San Diego CA real estate agents