Archive for October, 2008Keepin’ It Real Estate: What’s My Mortgage Worth?This post first appeared on Minyanville. As the debate rages about whether or not we’re finally approaching a floor in home prices, let’s examine the value of another asset: The mortgage. When considering a home-buying transaction, buyers (and sellers) typically worry most about the value of the house. Lenders, on the other hand, are much [...] Housing Perspective: August Case-Shiller Home Price IndexThe S&P/Case-Shiller home price index is out today, showing a continuation of the downtrend in property values. Data from August — two full months before the financial crisis spun out of control — shows weakness across the country: Prices fell in August for the 25th consecutive month Prices in 10 major markets plunged a record [...] Housing Perspective: September New Home Sales DataNew Home Sales rose unexpectedly in September, but prices continue to fall. According to Bloomberg: Purchases increased 2.7 percent to an annual rate of 464,000 Median sale price decreased to a four-year low The median price declined 9.1 percent from a year earlier to $218,400 The supply of homes fell to 10.4 months from 11.4 [...] Banks Beware: Here Come the LawsuitsThis post first appeared on Minyanville. Despite the Armageddon-esque financial turmoil of recent weeks, one thing about America hasn’t changed: If you really want someone to do something, sue them. They lined up in droves: Cities, counties and states sued the pants off Countrywide for its shady lending practices. California, Illinois and Florida all alleged [...] Housing Perspective: Existing Home SalesThis post first appeared on Minyanville. Put on those Rose-Colored glasses, it’s time again for the Existing Home Sales data: September sales came in 5.5% higher than last month, at 5.18 million (annualized) compared to estimates of 4.95 million Sales were 1.4% higher than last year — the first year-over-year increase in 3 years Inventory [...] Keeping It Real Estate: Don’t Ban Foreclosures!This post first appeared on Minyanville. Banning foreclosures is starting to gain momentum in Washington: This isn’t good. Barak Obama, the current frontrunner in the race for the White House, recently floated a plan for a 90-day moratorium on foreclosures by certain banks, along with other initiatives to revive the economy. While Obama’s heart may be [...] Fannie, Freddie Jump on GrenadeThis post first appeared on Minyanville. For anyone wondering where the billions of dollars in worthless mortgage-backed securities will wind up, look no further: The mirror. Fannie Mae (FNM) and Freddie Mac (FRE), the formerly quasi-public, now taxpayer-owned mortgage behemoths, are stealthily sopping up the worst of the structured mortgage debt Wall Street churned out [...] So, You Want to Fix the Housing Market?This post first appeared on Minyanville. Yesterday, I criticized Washington’s $700 billion financial bailout plan for missing the point. It fails to address the root of the problems facing the housing market and, by extension, the rest of the economy: Negative equity or a homeowner owing more on his house than it’s worth. On The [...] Washington Continues to Ignore Root of Housing ProblemThis post first appeared on Minyanville. Some say the definition of insanity is trying the same thing over and over again, expecting a different result. By that measure, voters should load up on straitjackets this November and drag everyone in Washington off to the nuthouse. Despite overwhelming evidence that we’re in the middle of a [...] Keepin’ It Real Estate: Realtors Try Used-Car Salesman TacticsThis post first appeared on Minyanville. That glitzy McMansion you’ve always wanted may finally be within reach. Or not. If nearly 3 years of home price declines, historically low interest rates and a relentless media barrage of half-truths from the National Association of Realtors haven’t been able to stabilize home prices, it’s doubtful a gimmicky [...] |