Housing recovery blossoms

[Chris]

I tried to tell you...

NEW YORK (CNNMoney) -- The U.S. housing industry -- crucial to any jobs recovery -- showed more signs of strength, according to two reports issued Wednesday.

The Census Bureau said housing starts and permits rose substantially in August. Separately, sales of previously occupied homes climbed 7.8% from a year ago, according to the National Association of Realtors.

Builders started on new homes at an annual rate of 750,000, up 29.1% compared with a year earlier. They applied to build another 803,000 new homes on an annual basis, a 24.5% jump compared with August 2011.

Home construction, sales showing some strength - Sep. 19, 2012

 

[Chris]

Home building will begin to bring down unemployment next year.

Back to a normal economy.

 

[Toro]

The housing market will normalize in 2014 or 2015. If it's 2013, that's great but unlikely.

But the housing market is going to "normalize." It isn't going to "blossom."

 

[g5000]

Home building will begin to bring down unemployment next year.

Back to a normal economy.

They don't come more clueless than you.

.

 

[g5000]

The housing market will normalize in 2014 or 2015. If it's 2013, that's great but unlikely.

But the housing market is going to "normalize." It isn't going to "blossom."

Exactly. It has been bouncing along the bottom for some time. It will take years to get out from under.

Don’t be so sure the housing market is on its way back to health. Despite the first monthly increase in home prices in 7 months, as the Case-Shiller indexes showed on Tuesday, there are still more than 10 million properties with underwater mortgages, and a shadow inventory of 1.5 million, or four months supply. Negative equity will continue to take its toll on consumption, while the shadow inventory, worth about $246 billion according to CoreLogic, will constrict lending and probably affect banks’ earnings.

Noting that there are between 10 and 11 million properties with underwater mortgages, Goldman’s analysts explain:

“Even if a small fraction of these borrowers were to default on their mortgages in the near future, either because of negative shocks to borrowers’ ability to pay or due to strategic defaults, it could result in another sharp decline in home prices and impede the ongoing recovery in the housing market."

Out of those 10 million mortgages that are underwater, about 3 million remain “severely underwater,” which means the initial loan-to-value ratio (LTV) is 125% or more (in other words, the value of the mortgage is at least 25% higher than that of the property). While seriously delinquent mortgages (at least 60 days) have declined, the percentage of loans in foreclosure has remained stubbornly high, at about 10% of underwater mortgages.

Homeowners remain highly leveraged, according to Goldman, and overleveraged homeowners will definitely need to cut back on consumption. Borrowers with high negative equity are also many times more likely to default.

10 Million Underwater Mortgages And Shadow Inventory Worth $246B Mean Housing Trouble


And even though the shadow inventory is at 1.5 million, there are far more homeowners than that who are waiting for the market to pick up again so they can sell their houses. So as you said, this is going to take years to normalize.

.

 

[Truthmatters]

sorry guys but the doom and gloom wishers are just going to have to try something else

 

[Claudette]

Well we all know how Chrissy likes to paint that rosey picuture.

The fact that it ain't so rosey never stands in his way.

Why let the truth get in the way of a good whopper??

 

[Chris]

Housing starts just went up 29% nationwide.

Auto sales are back to normal, retail sales are back to normal...housing is the last piece of the puzzle.

Home building will bring down unemployment next year.

 

[Truthmatters]

the wealth effect is about to spur on spending aslo

 

[Full-Auto]

Home building will begin to bring down unemployment next year.

Back to a normal economy.

It could, but no guarantees. The current back slide may just ruin that as well.

You guys just suck................................

 

[Chris]

Home building will begin to bring down unemployment next year.

Back to a normal economy.

It could, but no guarantees. The current back slide may just ruin that as well.

You guys just suck................................

Poor auto.

Plenty of money to be made, if you have some ambition.

 

[Chris]

Falling inventories of homes....

On a national basis, listed inventory was down 20.4% in May, compared with May 2011, according to recent statistics from the National Association of Realtors. There’s a 6.6-month supply of homes, given the current pace of sales.

In some local areas, however, the plunge has been much steeper.

The inventory of homes for sale in King County, where Seattle resides, was down 43.8% in May, compared with a year ago, according to Redfin, a national brokerage based in Seattle. In the District of Columbia, inventory was down 34.2% over the year. Inventories were down 37.9% in Sacramento County, Calif., 34.3% in Maricopa County, Ariz., where Phoenix is located, and a whopping 54.9% in Orange County, Calif.

Housing inventory plunges in some places - MarketWatch

 

[Full-Auto]

Home building will begin to bring down unemployment next year.

Back to a normal economy.

It could, but no guarantees. The current back slide may just ruin that as well.

You guys just suck................................

Poor auto.

Plenty of money to be made, if you have some ambition.

Your problem is I live this industry, You are just a fluffer. With not much real understanding.

 

[kwc57]

I tried to tell you...

NEW YORK (CNNMoney) -- The U.S. housing industry -- crucial to any jobs recovery -- showed more signs of strength, according to two reports issued Wednesday.

The Census Bureau said housing starts and permits rose substantially in August. Separately, sales of previously occupied homes climbed 7.8% from a year ago, according to the National Association of Realtors.

Builders started on new homes at an annual rate of 750,000, up 29.1% compared with a year earlier. They applied to build another 803,000 new homes on an annual basis, a 24.5% jump compared with August 2011.

Home construction, sales showing some strength - Sep. 19, 2012

Is Obama giving away new houses now with cell phones, welfare checks and food stamps?

 

[CrusaderFrank]

I thought unemployment checks stimulated the Obama economy?

Can you pick one broad idea and stick with it?

 

[beretta304]

I tried to tell you...

NEW YORK (CNNMoney) -- The U.S. housing industry -- crucial to any jobs recovery -- showed more signs of strength, according to two reports issued Wednesday.

The Census Bureau said housing starts and permits rose substantially in August. Separately, sales of previously occupied homes climbed 7.8% from a year ago, according to the National Association of Realtors.

Builders started on new homes at an annual rate of 750,000, up 29.1% compared with a year earlier. They applied to build another 803,000 new homes on an annual basis, a 24.5% jump compared with August 2011.

Home construction, sales showing some strength - Sep. 19, 2012

"Even after recent gains, housing starts lag well behind the peak set in May 2005, when the pace of building hit more than 2 million homes."



Home construction, sales showing some strength - Sep. 19, 2012[/quote]

 

[Chris]

I tried to tell you...

NEW YORK (CNNMoney) -- The U.S. housing industry -- crucial to any jobs recovery -- showed more signs of strength, according to two reports issued Wednesday.

The Census Bureau said housing starts and permits rose substantially in August. Separately, sales of previously occupied homes climbed 7.8% from a year ago, according to the National Association of Realtors.

Builders started on new homes at an annual rate of 750,000, up 29.1% compared with a year earlier. They applied to build another 803,000 new homes on an annual basis, a 24.5% jump compared with August 2011.

Home construction, sales showing some strength - Sep. 19, 2012

"Even after recent gains, housing starts lag well behind the peak set in May 2005, when the pace of building hit more than 2 million homes."



Home construction, sales showing some strength - Sep. 19, 2012

[/QUOTE]

We had a housing bubble during Bush.

Thanks for reminding us.

 

[Chris]

Housing starts should get over 1 million next year.

 

[LoneLaugher]

Good news for all Americans. Why the sour pusses here? This is simply good news.

 

[g5000]

A dropping inventory is without doubt a very positive sign. However there is still a great deal of overleveraged asset toxicity on the banks' books. The idea we will be back to a "normal economy" next year based solely on the performance of one sector over a short period is naive at best.

There are far too many rudderless economic missiles still whipsawing around out there. The odds are much greater one of them will land with devastating impact between now and next spring and obliterate whatever fragile "blossoms" one is watering.

I would not let one's political biases affect one's judgement about economic realities on the ground. That's a surefire way to get your ass kicked in the market.

All eyes on Europe.

.