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I agree. We bought a house to live in, not as our main moneymaker. The people responding to the Rasmussen Report must be living in a dream world and not trying to sell houses. We visited 7 or 8 open houses in Portland to see what was on the market and never saw any other shoppers. Last year at this time there would have shoppers in every house. Every house had dropped prices at least once, some on the third reduction. One real estate guy told us they had three offers on one house and every one fell through because buyers couldn't get financing. I live in a stable suburban neighborhood close to downtown Portland and houses are not selling. Latest reports indicate we're back to 2004 prices.
S&P: US home prices fall in April at record rate - Salon.com | News Wires (http://www.salon.com/wires/ap/business/2008/06/24/D91GF3HO1_home_prices/print.html - broken link)
U.S. home prices tumbled in April at the fastest rate since a widely followed index was begun in 2000 with all 20 metropolitan areas surveyed posting annual declines for the first time.
The Standard & Poor's/Case-Shiller home price index of 20 cities fell by 15.3 percent in April versus a year ago, according to Tuesday's report. Prices nationwide are at levels not seen since August 2004.
Story Not Found (http://www.marketwatch.com/News/Story/Story.aspx? - broken link)
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Here's the city-by-city breakdown in the Case-Shiller index:
Las Vegas, down 26.8% in the past year; Miami, down 26.7%; Phoenix, down 25%; Los Angeles, down 23.1%; San Diego, down 22.4%; San Francisco, down 22.1%; Tampa, down 20.4%; Detroit, down 18%; Minneapolis, down 15.5%; Washington, down 14.8%; Chicago, down 9.3%; New York, down 8.4%; Atlanta, down 7.5%; Cleveland, down 6.8%; Boston, down 6.4%; Seattle, down 4.9%; Denver and Portland, both down 4.7%; Dallas, down 3.4%; and Charlotte, down 0.1%.
The question, though, is whether this is a bad thing. The media certainly is reporting it as bad news. But this is actually good news. Here's why. Would you agree that if the price of gas fell 25% that would be a good thing? If you do then why should a 25% decline in home prices not also be a good thing? It certainly is a good thing for potential homebuyers who were priced out of the housing market for 5 years because of the inflationary spiral. Now they have a chance to buy a home based on a more accurate assessment of its real value.
Of course in a deflationary spiral there are some losers. If the cost of a barrel of crude dropped a dollar a lot of futures traders would lose their shirts. We wouldn't be shedding tears over their misfortune, would we? In the credit crisis a lot of bankers are losing their shirts. But Congress is ready to spend 300 billion dollars to bail them out. Why? Well the sweetheart loans Countrywide made to Chris Dodd and Kent Conrad (and who knows how many other Senators and Representatives) answers that question.
Bottom line: it's time to choose whether we live in a country with a free market economy or a socialized economy.
I say let it tank the market is due to fix itself and those over priced homes can come back to reality. Investiments dont always work out and that means cheaper homes can become affordable to those who waited and saved up. I crazy concept they saved for a house and can buy one now. So those in the lower to middle income can by a house to and get something for it not a shack for 500,000
I guess if they say it long and loud enough, Americans will believe that the housing market is on the verge of collapse.
Is it just another drumbeat by the media trying to depress and convince the electorate that the economy and housing crisis is collapsing?
Seems as though from his recently concluded comments today Secretary Paulson thinks there is a problem. I suspect you consider the linked article another example of media hype to help Obama byPaulson and Wall street?
Perhaps that was too difficult, maybe this is better - if I ask a homeowner at a listing presentation how much their home is worth, how often will the response be less than what the market says.
Not sure what some of you guys are talking about but Bernanke sure thinks there is a banking crisses going on caused by the housing market.
Bernake quoted
" It's the first time Bernanke has indicated how long he'll extend the lending programs that were introduced in March in a provision of Fed credit to nonbanks unprecedented since the Great Depression."
Fannie Mae, based in Washington, and McLean, Virginia-based Freddie Mac have dropped more than 60 percent this year
Bernanke Says Fed May Continue Lending Into Next Year
July 8 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke, seeking to allay renewed concerns over the health of the nation's financial system, said the central bank may extend its emergency-loan program for investment banks into next year.
The Fed chairman's comments come a day after Fannie Mae and Freddie Mac fell to their lowest level since 1992 and the Standard & Poor's 500 Banks Index dropped to a 12-year low. It's the first time Bernanke has indicated how long he'll extend the lending programs that were introduced in March in a provision of Fed credit to nonbanks unprecedented since the Great Depression.
I'm certain someone will wish to elaborate on how millions of homes without owners is good for the local tax base, as well as municipal government tax rolls and how it affects us all.
I don't think there is a housing crisis. only 1/2 of 1 percent of homes are facing foreclosure. this isn't a "crisis." they use that word to try to justify the passing of the foreclosure prevention act of 2008, which is a bailout for banks. you are in a good market walidm. I just read that charlotte just saw it's first decrease in home values and it was only a fraction of a percent. if there was a bubble, it has already burst. now the bubble markets have to find something to do with the excessive inventory they have. I came to NC from DC, and the problem they have in DC is they just stacked 4000 square ft. town home on top of 4000 square ft. town home thinking that everyone was looking for a brand new place. I think they are starting to sell now, as the bubble there has bottomed out.
Quote:
Originally Posted by walidm
I'm certain someone will wish to elaborate on how millions of homes without owners is good for the local tax base, as well as municipal government tax rolls and how it affects us all.
I'm certain someone will wish to elaborate on how millions of homes without owners is good for the local tax base, as well as municipal government tax rolls and how it affects us all.
No one is doubting that but is their any proof at all that spending billions will make the hit to the local tax rolls any less. Not only less but was the billions spent worth it?
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