The National Association of Realtors, which has long proclaimed that U.S. home prices haven’t declined on a nationwide basis since the Great Depression, now says they are likely to do just that this year.
The Realtors, which had been projecting as recently as February a 1.9 percent increase in the median home price this year, now say prices for previously occupied homes will slip 0.7 percent this year from the 2006 level.
The trade group’s revised outlook, which puts it in line with a growing consensus that home prices will fall at least modestly this year, underlines how quickly expectations about the market have changed in light of a recent tightening of credit by mortgage lenders. Before the subprime mortgage problems blew up recently, said Lawrence Yun, an economist for the Realtors, the group expected the housing market to begin recovering by the middle of this year. Now, he says, recovery is unlikely before late this year.
In 2006, the median price rose 1.1 percent from a year earlier to $222,000, even though the monthly median prices reported in the second half of 2006 were down modestly from year-earlier months.
Thomas Lawler, a housing economist in Vienna, Va., expects an even steeper fall, of 4.3 percent, in the median price of houses this year
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Meanwhile, the Mortgage Bankers Association suggested that the media’s intense focus on the housing crunch, and shoot-from-the-hip responses from legislators and regulators, threatened to make the situation worse. In an email Tuesday, the association told its members that it has allocated an extra $5 million to combat “a torrent of unfair press and counterproductive policy responses” sparked by the turmoil in the subprime market, where dozens of lenders have been forced to close down or seek bankruptcy protection.
“Misleading information, often reinforced by vivid and frightening anecdotes, is raising the very real possibility of overzealous regulatory and legislative responses,” the association wrote.
The $5 million budget for extra advertising, research and lobbying is equivalent to about 10 percent of the trade group’s annual budget. The association said it is trying “to shift the media focus away from the ’foreclosure crisis’ to the potential for a ’credit crunch’ that could result from over-legislation and over-regulation.”
quote:Originally posted by rimasco: The wrost has yet to be seen....there will be blood in the street before the smoke clears...
I agree whole heartily.
I can only premierly speak for Naples Fl. But the drastic change has just begun.
Few realize the impact that we are about to see.
Many think we are nearing the end of the housing slump but this might be just the beginning IMO.
Some say 2 -3 years and everything will be back to the way it was........NOT. Try 10 minimum.
What normally happens to a stock you see increase at an abnormal rate???? It collapses much like the home market we are in today. It was an unsustainable growth.
The backlash effect from this will be astounding.
Forclosures are at an all time high in Fl. and this may be just the tip of the iceberg.
I could go on and on about my thoughts on this but will continue on later.
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Glassman this has very little, if nothing to do with Dubya.
Its an ocurring cycle that had $$ signs in peoples eyes.
personally I made fortune in the past 5 years from the housing boom. Luckily I escaped mostly unscathed. I flipped 11 homes in the past 5 years and kept 2 for rentals.
What is really distrbing is the amount of pre-construction fallthroughs that developers arer now eating.
Was it the pres..... NOPE Just Americans looking for a quick buck with an overwhelming supply of lenders willing to take that risk who are now going to be flailing for recovery.
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Speaking for the east coast of Southern FL I can tell you its getting hit big time and the worst is still to come.
The biggest problem here are the collateral expenses such as the increase in property taxes the almost quadrupling of the cost of homeowners insurance and the utlities trying to recoup their losses.
For Sale signs have become the new lawn ornaments.
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Glassman this has very little, if nothing to do with Dubya.
Its an ocurring cycle that had $$ signs in peoples eyes.
personally I made fortune in the past 5 years from the housing boom. Luckily I escaped mostly unscathed. I flipped 11 homes in the past 5 years and kept 2 for rentals.
What is really distrbing is the amount of pre-construction fallthroughs that developers arer now eating.
Was it the pres..... NOPE Just Americans looking for a quick buck with an overwhelming supply of lenders willing to take that risk who are now going to be flailing for recovery.
comeon surfdude, i know that, presider ? decider? get it? LOL...
Bush does want to take credit for the "good things" that happened on his "watch" just like any other politician.... i bet i can find you a quote where he did take credit for the housing boom if i look hard, cuz i've seen him do it. i knew when he was saying it that he was "grasping"... something about homeownership being at an all-time high?
anyway? the only real influence or direct control (that i can think of) the White House has on the economy is the govt debt, and law enforcement activity....
-------------------- Don't envy the happiness of those who live in a fool's paradise.
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At least some banks are stepping up to the plate to fix the mess they started. Lenders are the ones who should be cleaning this one up, not the taxpayer.
quote:$1 billion to bail out homeowners Big banks pony up enough to refinance about 7,000 homeowners who took out subprime mortgages.
advertisement Article Tools E-mail to a friendTools IndexPrint-friendly versionSite MapDiscuss in a Message BoardArticle IndexBy Reuters Citigroup and Bank of America will provide $1 billion of mortgage financing to help about 7,000 victims of abusive lending practices avoid losing their homes.
The largest U.S. banks confirmed Wednesday they are working with the Neighborhood Assistance Corporation of America, which said it is trying to help subprime borrowers who face possible foreclosure because rates are rising on their loans.
NACA, of Boston, said the banks will help people refinance through fixed-rate mortgages with rates about 1 percentage point below the market. The funding will be part of previous commitments by the banks to provide affordable home financing.
According to its Web site, NACA now offers 30-year loans at 5.5%.
Video: Foreclosing on foreclosures "We demand that others commit the dollars needed to modify people's loans," said Bruce Marks, NACA's chief executive, in an interview. "If other lenders intend to foreclose, we will go after their decision makers."
Rising tide of late payments Last month, the Mortgage Bankers Association said late payments on subprime loans, or loans made to people with weaker credit histories, rose to 13.33% in the fourth quarter, and foreclosures on all home loans set a record.
Bank of America said it would offer financing under its 20-year agreement with NACA to provide $6 billion of affordable home loans through 2015.
More from MSN Community groups warn of 'default tsunami' States fight back against foreclosure fraud The foreclosure capital of the U.S. Facing foreclosure? 9 options Find local listings for foreclosed properties
"We maintain strong relationships with key organizations to extend our reach to borrowers to provide educational information and access to affordable mortgage products," spokeswoman Tara Burke said.
Citigroup made a 10-year commitment to offer $3 billion of financing to NACA clients who attend the group's financial education and training program, spokesman Mark Rodgers said.
The new program is "a good thing and will help people experiencing problems with their mortgages or (who) are distressed borrowers," Rodgers said.
According to its Web site, NACA helps arrange financing for people including low-income and moderate-income borrowers exploited by other lenders, or who live in neighborhoods with large minority populations and have been unfairly denied credit.
This article was reported and written by Jonathan Stempel for Reuters.
-------------------- No longer eligible for government service due to lack of tax issues.
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quote:Originally posted by The Bigfoot: At least some banks are stepping up to the plate to fix the mess they started. Lenders are the ones who should be cleaning this one up, not the taxpayer.
quote:$1 billion to bail out homeowners Big banks pony up enough to refinance about 7,000 homeowners who took out subprime mortgages.
advertisement Article Tools E-mail to a friendTools IndexPrint-friendly versionSite MapDiscuss in a Message BoardArticle IndexBy Reuters Citigroup and Bank of America will provide $1 billion of mortgage financing to help about 7,000 victims of abusive lending practices avoid losing their homes.
The largest U.S. banks confirmed Wednesday they are working with the Neighborhood Assistance Corporation of America, which said it is trying to help subprime borrowers who face possible foreclosure because rates are rising on their loans.
NACA, of Boston, said the banks will help people refinance through fixed-rate mortgages with rates about 1 percentage point below the market. The funding will be part of previous commitments by the banks to provide affordable home financing.
According to its Web site, NACA now offers 30-year loans at 5.5%.
Video: Foreclosing on foreclosures "We demand that others commit the dollars needed to modify people's loans," said Bruce Marks, NACA's chief executive, in an interview. "If other lenders intend to foreclose, we will go after their decision makers."
Rising tide of late payments Last month, the Mortgage Bankers Association said late payments on subprime loans, or loans made to people with weaker credit histories, rose to 13.33% in the fourth quarter, and foreclosures on all home loans set a record.
Bank of America said it would offer financing under its 20-year agreement with NACA to provide $6 billion of affordable home loans through 2015.
More from MSN Community groups warn of 'default tsunami' States fight back against foreclosure fraud The foreclosure capital of the U.S. Facing foreclosure? 9 options Find local listings for foreclosed properties
"We maintain strong relationships with key organizations to extend our reach to borrowers to provide educational information and access to affordable mortgage products," spokeswoman Tara Burke said.
Citigroup made a 10-year commitment to offer $3 billion of financing to NACA clients who attend the group's financial education and training program, spokesman Mark Rodgers said.
The new program is "a good thing and will help people experiencing problems with their mortgages or (who) are distressed borrowers," Rodgers said.
According to its Web site, NACA helps arrange financing for people including low-income and moderate-income borrowers exploited by other lenders, or who live in neighborhoods with large minority populations and have been unfairly denied credit.
This article was reported and written by Jonathan Stempel for Reuters.
Well that's good news. You have any idea how many mortgage loans there are out there that will just kill people? There's so many screwed up loans now, interest only, 3 year ARMS with horrendous rates, balloons, no down payment loans, it's ridiculous. What it's done is allow people who couldn't afford a home to get one and in the long run it's going to bankrupt the majority of them. If banks are stepping up to re-write the sub prime loans it's a good thing but I don't see it happening on a large scale. There's simply no way that a bank or mortage company will opt to offer a traditional 30 year loan to a high credit risk, at any interest rate. There's a tidal wave coming in the housing market and it's going to be ugly.
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Mortage brokers just took information the banks loaned the money they wanted to make loans.
What they did is miss the market nothing goes up for ever and real estate has topped in most places this is stating the obvious I know and it has happened before.
But never with a president at the helm that has done so much to weaken the purchasing power of the working class as this one has and lined the pockects of the wealthy. He has created a disaster in the making there may be still sometime to start a turn around but he better start quick are banks will be folding soon.
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Yep, it lays at the feet of the rightwing free marketers that have hijacked the Nation under the false pretense that Capitalism is required by the Constitution in the form of an "absolute free market but with Government guarantees to big money interest".
The Constitution offers no hint to any monitary "system" that the Nation is to abide! It is a document that simply specifies the mechanisms of Government and sets rigid restriction on any use of those mechanisms to influence the social and moral activities of "the people". The only powers granted to the Government by the Constitution are those of [i]absolute necessary[/] mechanism.
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Alot of the ex-shyster-stock-brokers(who didnt go to jail) went into the the mortgage brokerage buisness......hmmmmmm I wonder where theyll migrate next?
-------------------- "Simplicity is the ultimate sophistication"
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SAN FRANCISCO (Reuters) - The number of mortgage default notices sent to California homeowners last quarter rose to its highest in nearly 10 years as home prices stagnated and rates on adjustable loans pushed higher, a report released on Monday said.
Mortgage lenders filed 46,760 notices of default from January through March, marking an increase of 23.1 percent from the previous quarter and 148 percent from the year-earlier period, according to a report by DataQuick Information Systems, a real estate information service.
The first quarter's default level was the highest for the most populous U.S. state since the second quarter of 1997. It came amid a sharp rise in defaults on mortgages held by subprime borrowers, or borrowers with blemished credit, across the United States.
The low introductory interest rates on the their mortgages have been expiring, replaced by much higher rates that have made monthly mortgage payments too expensive for many households to maintain. Additionally, their options for refinancing their mortgages have been limited because home prices in many markets have been largely flat or slipping.
Many analysts say a surge of foreclosures is in the making and that it will weigh an already sluggish housing market and may slow the broader economy.
"Defaults tend to happen after a certain length of time and today's activity reflects a peak in the number of home loans made back in the summer of 2005. Additionally, the loans being made back then were riskier because of the subprime activity, as well as higher appreciation rates. It's easier to make a loan when the security for that loan is going up in value, than when values are flat," said Marshall Prentice, president of DataQuick.
RISKIEST LOANS INLAND
Most mortgages in California that went into default in the first quarter were originated between April 2005 and May 2006 and their median age was 15 months.
According to DataQuick, mortgages were least likely to go into default in Marin, San Francisco and San Mateo counties, three affluent coastal markets with a tight supply of housing that has helped prevent home prices from slipping.
The likelihood of default was highest in inland Sacramento, Riverside and San Joaquin counties, where prospective first-time home buyers rushed in during the housing boom in search of relatively affordable housing.
Squeezed from pricey coastal markets, many Californians moved to such interior areas and used adjustable-rate mortgages to purchase houses in scores of new-home developments. They now are facing higher interest rates on their loans and rising mortgage payments while home values in those markets decline.
"It's hard for me to say whether or not the damage is done in those areas," said economist Alan Gin of the University of San Diego's Burnham-Moores Center for Real Estate.
"It probably won't be until 2008 before we seen some improvement," Gin said, referring to California's default trend. "I anticipate the Federal Reserve will cut interest rates in late 2007 and into 2008, and I expect that will help give some support to the housing market."
-------------------- "Simplicity is the ultimate sophistication"
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Between the real estate market and the relentless outsourcing of our manufacturing jobs overseas...people in Michigan are getting hurt real bad...probably worse than most other parts of the country...Sad to see!
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Top 10 States with Homes in Foreclosure October 2006
1.
Colorado 1 out of 337 homes (117 % increase) 2.
Nevada 1 out of 389 homes (557 % increase) 3.
Georgia 1 out of 449 homes (99 % increase) 4.
Michigan 1 out of 623 homes (88 % increase) 5.
Illinois 1 out of 632 homes (144 % increase) 6.
Florida 1 out of 640 homes (49 % increase) 7.
Ohio 1 out of 654 homes (55 % increase) 8.
Tennessee 1 out of 668 homes ( 99 % increase) 9.
New Jersey 1 out of 675 homes (37 % decrease) 10.
Utah 1 out of 718 homes (13 % increase)
DETROIT, FT. LAUDERDALE, DENVER AND MIAMI TOP MSA LIST By RealtyTrac Staff
RealtyTrac® Third Quarter Report on Metro Area Foreclosure Rates Also Includes
Dallas, Indianapolis, Fort Worth, Atlanta, Las Vegas and Memphis in Top Ten
Irvine, Calif. – Nov. 9, 2006 – RealtyTrac (www.realtytrac.com), the leading online marketplace for foreclosure properties, released its Q3 2006 U.S. Metropolitan Foreclosure Market Report today. After two consecutive quarters featuring Indianapolis, Atlanta and Dallas as the three cities with the highest foreclosure rates, the third quarter report showed three new cities — Detroit, Ft. Lauderdale and Denver — posting the nation’s highest metropolitan foreclosure rates. Completing the top 10 list were Miami, Dallas, Indianapolis, Ft. Worth, Atlanta, Las Vegas and Memphis.
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