Existing home sales

Discussion in 'Economy' started by DavidS, Nov 24, 2008.

  1. DavidS
    Offline

    DavidS Anti-Tea Party Member

    Joined:
    Sep 7, 2008
    Messages:
    9,811
    Thanks Received:
    766
    Trophy Points:
    48
    Location:
    New York, NY
    Ratings:
    +767
    Existing home sales will be the first economic indicator of the week, coming from the National Association of Realtors at 10 a.m. Eastern on Monday.
    Economists expect existing home sales fell 2.5% to 3.47 million units in October.


    Existing home sales have moved in a narrow range over the past year, in part because of sales of foreclosed homes. New home sales are expected to fall 4.8% to 411,000 units. But some analysts expect a bigger drop to lows not seen since 1982.
     
    Last edited: Nov 24, 2008
  2. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    We've got homeless families, we've got empty homes.

    hmmmmm
     
  3. DavidS
    Offline

    DavidS Anti-Tea Party Member

    Joined:
    Sep 7, 2008
    Messages:
    9,811
    Thanks Received:
    766
    Trophy Points:
    48
    Location:
    New York, NY
    Ratings:
    +767
  4. Zoom-boing
    Offline

    Zoom-boing Gold Member

    Joined:
    Oct 30, 2008
    Messages:
    25,061
    Thanks Received:
    7,260
    Trophy Points:
    260
    Location:
    East Japip
    Ratings:
    +10,120
    Isn't this partially how we got into this mess to begin with? Providing homes/mortgages to people who could not afford them?
     
  5. DavidS
    Offline

    DavidS Anti-Tea Party Member

    Joined:
    Sep 7, 2008
    Messages:
    9,811
    Thanks Received:
    766
    Trophy Points:
    48
    Location:
    New York, NY
    Ratings:
    +767
    Well, we've been doing that for decades, but we've never had a problem like this before. There's something very different about the types of loans made in the past and the types of loans made in 2005-2007.

    Companies like Bear Sterns and Lehman went KO because banks sold them those mortgages as securities and then Lehman sold those securities overseas.

    We must find out what happened with the sub-prime loans issued between 2005-2007. Why did such a massively higher percentage of these sub-prime loans go bad vs. other sub-prime loans issued between 1995-1997 or any other two year period. If we don't find out what went wrong... we're going to be in big trouble.
     
  6. Care4all
    Offline

    Care4all Warrior Princess Supporting Member

    Joined:
    Mar 24, 2007
    Messages:
    32,676
    Thanks Received:
    6,600
    Trophy Points:
    1,170
    Location:
    Maine
    Ratings:
    +11,023
    NO....this is not how we got in the mess in the first place.
     
  7. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,483
    Thanks Received:
    4,840
    Trophy Points:
    1,130
    Ratings:
    +15,279
    He asked if it was "partially" the reason.

    And the answer to that is yes.
     
  8. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617

    Yes, but once you cut the cake what's another piece?

    We probably more than paid for them in full with the BANKERS' WELFARE package they just passed.
     
  9. Old Rocks
    Offline

    Old Rocks Diamond Member

    Joined:
    Oct 31, 2008
    Messages:
    46,419
    Thanks Received:
    5,406
    Trophy Points:
    1,840
    Location:
    Portland, Ore.
    Ratings:
    +10,281
    OK, here's another take on the problem. The last few years that the subprime loans were being peddled, rentals had gone way up in the area that I live in. Since I was not watching them outside of Portland, Oregon, I cannot say that was the case elsewhere. But you could get a no down-payment loan for a house for a cheaper monthly payment than you could rent a much smaller place for. Not only that, they were actively telling people that with equity increase, they could borrow again when the ARM kicked in, and get a reasonable rate. Some people who got in on the early ARMs actually did this.

    So we have a fellow that buys, because he gets more at a lesser monthly rate for a couple of years, and is assured that he can re-fi as the ARM kicks in. But, as the economy turns sour, he starts working less time, and his monthly income is now less, so he is less credit eligable. Or his company drops health care as a benefit, and someone in his family has a medical issue. There are a thousand differant scenerios, and each has one ending, default and foreclosure.

    The declining income of the blue collar middleclass, the accelerating cost of medical care, and the dropping of insurance for many workers are all part of a toxic equation. And equation that is taking this nation down the drain.
     
    • Thank You! Thank You! x 1
  10. Zoomie1980
    Offline

    Zoomie1980 Senior Member

    Joined:
    Jan 16, 2008
    Messages:
    1,658
    Thanks Received:
    128
    Trophy Points:
    48
    Ratings:
    +128
    None of this comes to an end until the housing market finds it's real bottom. The government and all of us would be best served for the gov't to simply get out of the way and let all of this find it's NATURAL bottom, because it's going to find that bottom at some time, anyway, regardless of what gov't does and and all gov't can do is draw it out. We've had one 700 billion dollar infusion that so far has had little to no real effect, another one to come that will likewise do little. Until the number of new good loans outnumbers the number of new bad loans it won't get better and that won't happen until national housing prices reach the point to where idle inventory ceases to grow.
     

Share This Page