Housing recovery blossoms

[Chris]

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.

.

Numbers don't lie.

Only people lie.

 

[JWBooth]

Cool, another Fed funded bubble....how many will this one take down when it busts?

 

[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

We had a housing bubble during Bush.

Thanks for reminding us.[/QUOTE]


Point missed...

 

[beretta304]

Housing starts should get over 1 million next year.

Yeah...and I "should" win the Lottery too!

 

[Chris]

Housing starts should get over 1 million next year.

Yeah...and I "should" win the Lottery too!

You should.

We are at 800,000 now.

1 million is not much of a stretch.

The experts I have read are predicting 1.2 million housing starts next year.

 

[kwc57]

Housing starts should get over 1 million next year.

Yeah...and I "should" win the Lottery too!

You should.

We are at 800,000 now.

1 million is not much of a stretch.

The experts I have read are predicting 1.2 million housing starts next year.

Well yeah, the economy will improve simply based on Romney's election as President.

 

[g5000]

Housing starts should get over 1 million next year.

That is still below the historical average.

Numbers don't lie.

Only people lie.

Too bad you don't know shit about the numbers then.

.

 

[bigrebnc1775]

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.

Plenty of money to be made to be redistributed by obama's policy,

 

[BecauseIKnow]

It's gonna get hit hard after the elections...then give it a few years and it will be booming

 

[Remodeling Maidiac]

Chris you've been saying this shit for over a year now. One of these days you'll actually be right. Keep up the good work

 

[Newby]

Is the Government Backing a New Housing Bubble?

Is the Government Backing a New Housing Bubble?

By DAVID FRANCIS, The Fiscal Times

May 14, 2012
Right now, the U.S. Federal Housing Authority is offering historically low interest rates on home loans as part of an effort to kick-start the housing market. Under a plan introduced by President Barack Obama, an FHA-qualifying U.S. homebuyer can apply for a 30-year mortgage with a fixed interest rate of 3.75 percent and a 15-year fixed mortgage at 3 percent. FHA loans require as little as 3.5 percent of the home’s value up front in the form of a down payment.

Compare this to a traditional mortgage offered by a private bank. Private banks require large down payments of buyers – traditionally 20 percent – to qualify for a low interest rate.

After the housing bubble burst forcing the United States into the Great Recession, traditional home loans have become harder to get. Banks have tightened lending standards, and wage stagnation and job loss have made it difficult for prospective buyers to save enough to qualify. But without qualified buyers, the housing market can’t recover and play a part in the broader economic recovery.

The Obama administration’s answer to this Catch 22 is this government-backed FHA mortgage program, a plan aimed at adding buyers to a seller-heavy market. But according to experts, giving under-qualified buyers loans at such low interest rates creates the potential for many of the same problems that led to the housing bust in 2007: people with questionable finances who can’t qualify for traditional mortgages are entering an uncertain housing market, just as unqualified borrowers did in the years before the housing crash.

 

[Claudette]

Is the Government Backing a New Housing Bubble?

Is the Government Backing a New Housing Bubble?

By DAVID FRANCIS, The Fiscal Times

May 14, 2012
Right now, the U.S. Federal Housing Authority is offering historically low interest rates on home loans as part of an effort to kick-start the housing market. Under a plan introduced by President Barack Obama, an FHA-qualifying U.S. homebuyer can apply for a 30-year mortgage with a fixed interest rate of 3.75 percent and a 15-year fixed mortgage at 3 percent. FHA loans require as little as 3.5 percent of the home’s value up front in the form of a down payment.

Compare this to a traditional mortgage offered by a private bank. Private banks require large down payments of buyers – traditionally 20 percent – to qualify for a low interest rate.

After the housing bubble burst forcing the United States into the Great Recession, traditional home loans have become harder to get. Banks have tightened lending standards, and wage stagnation and job loss have made it difficult for prospective buyers to save enough to qualify. But without qualified buyers, the housing market can’t recover and play a part in the broader economic recovery.

The Obama administration’s answer to this Catch 22 is this government-backed FHA mortgage program, a plan aimed at adding buyers to a seller-heavy market. But according to experts, giving under-qualified buyers loans at such low interest rates creates the potential for many of the same problems that led to the housing bust in 2007: people with questionable finances who can’t qualify for traditional mortgages are entering an uncertain housing market, just as unqualified borrowers did in the years before the housing crash.

OMG Housing meltdown, part II. Jesus. How idiotic are these Clowns??

 

[Sinjorri]

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.

if you dont include other factors and you choose not to than yes you would be right, contrary to the popular belief in your head, other factors are also involved. try to keep learning.

 

[Old Rocks]

Well, here in Portland, Oregon, I am watching my little properties increase in value.

 

[LogikAndReazon]

Everyone thinks the housing market in the U.S. looks like it's starting to bottom.

Famed economist Gary Shilling is not one of them—you could call him notably bearish on housing.

In fact, he expects prices to drop another 20 percent from here and doesn't think we will see a bottom in the market for another several years.

The main reasons Shilling is so pessimistic: There is a huge supply of excess inventory not being accounted for, and prices still have not fallen to anywhere near long-term historical averages.

In his monthly INSIGHT client newsletter, Shilling outlined his bearish housing thesis and used several charts to illustrate why he thinks there is no bottom in sight for the U.S. housing market, and more pain is ahead for American homeowners.



Read more: GARY SHILLING: No Housing Bottom Near - Business Insider
GARY SHILLING: No Housing Bottom Near - Business Insider

 

[Avorysuds]

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

Well if it wunt for all you American hating liberals that prayed and wished 100 times a day for the country to fall apart under Bush we wouldn't be in this mess...

 

[LogikAndReazon]

"FHA loans require as little as 3.5 percent of the home’s value up front in the form of a down payment.

Compare this to a traditional mortgage offered by a private bank. Private banks require large down payments of buyers – traditionally 20 percent – to qualify for a low interest rate."

If you put less then 20% down on a home you NEVER belonged in it.................................

 

[depotoo]

I love that 29% figure. Yet when you read the actual report -

Privately-owned housing starts in August were at a seasonally adjusted annual rate of 750,000. This is 2.3 percent (±10.2%)* above the
revised July estimate of 733,000 and is 29.1 percent (±12.8%) above the August 2011 rate of 581,000.

 

[jasonnfree]

Because democrats are the party of hope while republicans are the party of fear. Must be tough going through life afraid of everything and being so negative.

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

 

[Sinjorri]

Because democrats are the party of hope while republicans are the party of fear. Must be tough going through life afraid of everything and being so negative.

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

yeeeeaaaaah someone is still young.