That horrible housing situation is getting worse.

Discussion in 'Economy' started by Neubarth, Sep 13, 2009.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    Regardless of all of the lies from the Real Estate Association, property values will continue to come down all across the United States. Repossession auctions will make certain of that. When you consider that the home buying credit is going to run out, just like Cash For Clunkers ran out, you know that things are going to hell on a sleighride.


    •Two-thirds of recent home sales are either foreclosures or short sales (i.e. banks taking a loss on the mortgage).
    •Only a third of the remaining – roughly 10% of overall sales – comes from something we could call a normal selling process.

    Quite Frankly, that is not encouraging when you consider that millions of properties have already been foreclosed on..

    Meanwhile, the Mortgage Bankers Association said last week that the number of homeowners behind on their mortgage payments hit a new high in the second quarter, with more than one in eight homeowners delinquent or in the foreclosure process.

    These pending sales will put more pressure on sales prices. And, thanks in part to the refinancing boom, it’s estimated that approximately one quarter of all homeowners owe more on their homes than they are currently worth.

    Many will walk away or quit paying if they end up in financial distress, and with the tremendous number of people filing for Unemployment Insurance across the land (2 Million a month), you know that the sleigh rails are greased.
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    Foreclosures are increasing.
     
  3. RodISHI
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    RodISHI Gold Member

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    It will be a down trend for awhile. The "blue sky" and "creative accounting" will take years and years to overcome.
     
  4. Toro
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    Toro Diamond Member

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    I think we're seeing a bottom in housing, though it depends where you live.

    The fact that most of the sales are foreclosures is a good thing, not a bad thing. The banks MUST clear out their inventories before bank balance sheets are repaired and credit can flow again.

    Sales are picking up, there are bidding wars at the low end of the spectrum and houses are beginning to clear above asking prices.
     

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