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The numbers are not as good as they sound on paper. This housing thing will most likely never return to the way it was before the crash and this is a good thing as it was a house of cards, no punn intended. People buying homes that they could not afford and loans given based on sayso income. You could qualify for a 1,000,000 dollar home just because you said you had a 500,000 a year income but really worked at burger king. It was a fast crazy short term ride but when it hit the mountain wall the ride was not worth the ending.
Is this only because the dollar index has been plummeting during the same time? If the index falls, of course "prices" rise, that is not a good thing. Smoke and mirrors people...smoke and mirrors.
I heard on the radio this moring that the FHA does not have on hand the 2% of reserves to the amount of outstanding loans, which just means they've still been writing bum loans. The report said that would mean a second wave of foreclosures on the horizon.
housing prices are up, because the GOVERNMENT is giving these 8-12k incentives (just like cash for clunkers) for first time home buyers...watch the market drop again when the incentive stops
"In the past year, prices are down 13.3% in the 20 cities."
Month to month means nothing. These numbers are NOT seasonally adjusted. Home prices always have an uptick in the summer. And with the government handout to FTHBs this so called monthly increase is actually pathetic.
If the tax credit is not extended home sales and prices will fall through the winter on a monthly and year to year basis.
Is this only because the dollar index has been plummeting during the same time? If the index falls, of course "prices" rise, that is not a good thing. Smoke and mirrors people...smoke and mirrors.
I disagree, if you look at the historic relationship of housing price change and the international value of the dollar (in relation to other major currencies) you don't find any correlation at all with declining dollar = increased housing prices.
It has nothing to do with the value of the dollar.
I heard on the radio this moring that the FHA does not have on hand the 2% of reserves to the amount of outstanding loans, which just means they've still been writing bum loans. The report said that would mean a second wave of foreclosures on the horizon.
Maybe in some regions housing prices are stabilizing and holding steady. But overall, unemployment is up, foreclosures are up and, yes, FHA is engaging in the same risky loans that Fannie and Freddie did. I agree. That spells trouble.
"In the past year, prices are down 13.3% in the 20 cities."
Month to month means nothing. These numbers are NOT seasonally adjusted. Home prices always have an uptick in the summer. And with the government handout to FTHBs this so called monthly increase is actually pathetic.
If the tax credit is not extended home sales and prices will fall through the winter on a monthly and year to year basis.
Case Shiller measures monthly changes in 20 markets. You can go to the Standard & Poor's website to download the spreadsheet showing monthly price changes. If you do, you'll see that this monthly change is historically significant, especially if you evalutate the monthly changes the past few years.
I think it is a "bend", and unless we get another massive economic disruption in the near future I think the housing value decline is generally over.
Maybe in some regions housing prices are stabilizing and holding steady. But overall, unemployment is up, foreclosures are up and, yes, FHA is engaging in the same risky loans that Fannie and Freddie did. I agree. That spells trouble.
I agree with you that the loans issue hasn't been adequately resolved, and I think it is a disgrace that this problem hasn't been fixed.
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