Home Prices Prompt ‘Second Dip’ Fears (Reid's NV Hit the Worst)

The Hill ^ | December 29, 2009 | Ian Swanson

[Diana in Wisconsin]

Home prices rose slightly in October, according to a new market survey, but gains are clouded by fear that prices could fall again.

Prices declined by 6.4 percent in October compared to the previous year in the 10-city survey by the Standard & Poor’s Case-Shiller index released on Tuesday. In the group’s 20-city survey, prices fell by 7.3 percent.

But all 20 metro areas surveyed showed an improvement in their annual rates of decline in October as compared to September. That continues a trend in which the housing price decline has slowed markedly since prices crashed at a much higher rate in 2007 and 2008.

Still, David Blitzer, the chairman of the index, described October’s numbers as “flat” since the improvement between September and October was much smaller than in previous months.

“Coming after a series of solid gains, these data are likely to spark worries that home prices are about to take a second dip,” Blitzer said in a release.

On the bright side, he noted that sales of existing homes have been strong in recent months, which has allowed the market to work off a huge inventory of homes for sale. However, housing starts remain weak, and fears that the market will be swamped by a new wave of foreclosures remain, according to Blitzer.

Government programs propping up the housing market, including a tax credit that was renewed and expanded by Congress late last fall, are also expected to expire in the first half of 2010.

The housing numbers will be watched closely by the Obama administration and members of Congress, particularly with the midterm elections in 2010 at the forefront of minds.

Congress is expected to move a jobs bill soon after returning to Washington in the hopes of stemming unemployment, which stands at 10 percent. High unemployment has exacerbated the rate of foreclosures in the nation.

In a troubling note for Senate Majority Leader Harry Reid (D-Nev.), the Las Vegas metro area remains among the worst-performing areas in the country.

“Las Vegas remains the one market that has not seen a glimmer of hope so far this year,” the Case-Shiller index stated. Prices in the area have declined for 38 consecutive months with a peak-to-trough reading of 55.4 percent. Average prices are barely 5 percent above their January 2000 levels, according to Case-Shiller.

Reid is up for reelection in 2010 and is a major target for Republicans.

[Diana in Wisconsin]

'The Perfect Storm' brewing to get rid of that weasly little creep! Git Bizzy, Nevada. :)

[Trod Upon]

First you have to wring out all of the bubble increase, including many layers of flipping baked in, and then you may need a second dip to account for the current recession/depression we’re in. I don’t think it’s over by any stretch.

[Diana in Wisconsin]

Me, either. I think 2010 and beyond are going to be quite painful for many of us.

[ladyvet]

"You can't get corporate jets, you can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer's dime," Obama said

Hows that hope and change you voted in doing for you now Las Vegas?

[Irish Eyes]

I do not see it getting better in AZ (Phoenix) anytime soon.

:(

[The Duke]

Why shouldn’t house prices fall until they reach the prices in other parts of the world with which we compete? What does a house go for in Bhopal?

[BilLies]

Let me see, a close down of Vegas:
More water to go down stream to Arizona and California for growing food for the poor;
Reduces the number of customers for male and female whores;
Lessen the demand for alcohol and drunken consequences;
Means less people to hustle you;
Saves tons of fossil fuel for those driving or flying to Vegas and back;
Means the corporate and governmental organization personnel will have less time to screw around and will be more productive (or at least get more rest on the job;
Means the level of loans backed by the Fannie Mae and Freddie Mac organizations will be less;
Means that people who lose their money gambling will, instead, be putting in the bank and small business will be able to get loans and hire their unemployed in other parts of the country;
etc etc
AND YOU DIDN'T THINK THE O'BANAL DIDN'T KNOW WHAT HE WAS DOING TO NEVADA..........THE MAN IS GENIUS./s

[Bean Counter]

Word on the street is that the banks are about to dump around 1.8 million more foreclosed homes on the market, and if they do there are a whole bunch of second mortgages attached to many of those homes that are worth exactly zero, which won’t help matters one whit.

At the same time, figure the economic impact of an imminent Israeli air strike on Iran.

And the dollar is worth about the same as (used) Costco toilet paper...

Perfect storm indeed...

[Zeddicus]

One thing I don’t think most people realize is that, for the purposes of counting “home sales” statistics, FORECLOSURES are counted as a “sale” because ownership changes hands.

So when you see articles like this pumping increased home sales figures, know that around 30% (IIRC) of those “sales” are foreclosures.

And that floodgate isn’t open more than a crack yet.

I really, really feel bad for people still sitting in the typical 3000+ sq.ft. suburban McMansion on a big mortgage (or two). That was me a couple months ago, and I am grateful beyond words that I was able to sell it and get out with some cash in my pocket.

[rebapiper]

Like your name.
Things are not going to get better and congress doesn't want things to get better, why do you think they keep printing more and more money? why do you think they age giving more and more money to the giant mortgage companies?
The RAT party in Congress and the obozos WANT this country to fail, the NEED this country to fail in order to put thru thier one world government,their one world currency, they WANT Communism, they WANT socialist agenda. Americans are still in denial, many still refusing to face up to what is happening. They honestly don't think these RATS in office can really bring down this country, They say, their all crooks, con artist, their greedy for wealth and power and their is nothing anybody can do. You can't argue with many Americans because they just don't want to hear about politics. If you speak out about obozo they don't hesitate to call you a racist, they only thing they have to fight back at you with is, you just don't want a black man in office. Most of obozos supporters are those that want the free life, live off the backs of hard working Americans and you can't even tell them you no longer can live of the government if their are no jobs, they also think their is plenty of money for unemployment benefits.
Things have got to get worse before and it's got to affect the poorest people,because this is the bunch that is keeping this RAT party up in the poles, not counting the fraudulent poll numbers. Many people are living in bankrupt houses and not even bothering to save money to possibly keep their house, their living in a fantasy world and until they are cut off or at least cut back on their benefits, especially the welfare benefits. Welfare was meant for the children, but you have to be single to get help. Many girls get pregnant just for the fact that they can get an apartment, check,food stamps, free medical, just about everything is free to them. They only problem with this is most of them live with their boyfriends and the BABY IS THE IS THE BREAD WINNWE. They live off their children and the boyfriends come and go. The social workers and the courts are more than happy to support these girls and stand by them when they are in need. Legal aid has an abundance amount of money, a bottomless pit of money when it comes to keeping the children with some of these low life girls. Many of them live like whores and the courts will not remove the children from the homes because the social worker and legal aid fight for them with tax payers money.
Most social workers belong to the RAT party and they tell them to vote for the RATS is they want to keep their benefits or get them increased. They all want free insurance, they already have but they want more. Most people don't don't the obozocare,polosicare or reidcare is not about healthcare, it's really about the RIGHT TO DIE LAW, a law they couldn't get passed when the Clintons were in office but the healthcare will do the job. It will save money because many SENIORS WILL DIE for lack of care or medication. Many seniors do abuse the system but it can be controlled if companies like AARP would shut down and replace many of the liberal workers in the government offices. Many people that are not seniors and have existing health problems will also be refused medical help. So with many of these people being MURDERED it will save money but saving money will not help at this stage. Were to far gone and if Americans don't start calling for the removal of many of the elected officials you can kiss this country good by.
The liberals don't want waterboarding, wonder why, if they were to be questioned by the FBI I would surely like waterboarding being used on our elected officials because right now most of them are QUILTY OF TREASON and that includes the obozos.

[familyop]

Aaaaaaaaaaaaaaaa! Panic! Run for your lives! The end is near! Good! Real estate was an overpriced racket for a very long time. And yes, I want to see prices fall to 1950s levels or lower. And yes...all the miseries associated with that.

[familyop]

"Word on the street is that the banks are about to dump around 1.8 million more foreclosed homes on the market, and if they do there are a whole bunch of second mortgages attached to many of those homes that are worth exactly zero, which won’t help matters one whit.

At the same time, figure the economic impact of an imminent Israeli air strike on Iran.

And the dollar is worth about the same as (used) Costco toilet paper...

Perfect storm indeed..."

Yes! Yes! Alright! But IMO, Israel should continue working non-stop at the best anti-ballistic missile defense systems on the planet and concentrate the bombings only on Iranian oil production and transportation facilities. That would be a better storm, and many people are deserving of that.

[Painesright]

In the U.S., consumers owe over 11 TRILLION dollars in 1 - 4 family home mortgage debt and 2.6 Trillion in other consumer credit debt... for a total of around 14 Trillion. One Trillion (ONE) is $1 per second for 32,000 years... without interest! Noodle that one for a minute.

People are screaming about the Fed Gov’t owing 12 Trillion... at least the gov’t can tax and they have a printing press... consumers owe MORE than the Fed Gov’t and many consumers have lost their only source of income... a job!

Subprime was simply the first link to break in an extraordinarily over-stretched chain of debt. Alt-A Option ARM loans are now defaulting at the same rate or at an even higher rate than subprime... Prime loans are not far behind... we’ve only seen the tip of the iceberg in prime foreclosures.

ANY loan that was taken out when the market was grossly over-valued was a bad loan. If a “prime” borrower with perfect credit, full income documentation and a 20% down payment bought a house or a commercial building that was 40% over-priced, then that TOO was a bad loan.

Americans took out and spent HUNDREDS OF BILLIONS of dollars in home equity loans from 2000 - 2007. They spent it on clothes, cars, boats, RV’s, 2nd homes, nannies, private schools, fine wine, fabulous vacations, etc.

That home-ATM has been cut off... which is playing a huge part in unemployment and those debt-fueled jobs are not coming back any time soon and higher taxes, Obamacare, Cap and Trade and Card Check will only make unemployment worse!!

Home prices are going to continue to decline until supply meets demand, meets a price that the average person can afford, meets a consumer who can qualify for a loan under new, much stricter mortgage guidelines.

There is not a mortgage modification scheme known to man that can stop millions and millions of additional foreclosures from happening.

[Diana in Wisconsin]

I agree. It’ll be worse on the coasts, as usual. The Midwest homes hold their value pretty well. I’ve flipped five homes here in WI to eventually buy my farm and always made $30K & more on each flip.

My little farm is still gaining value, but at a slower pace than it used to. Been here 15 years already...we’re digging in and we’re not leaving unless it’s feet first.

By the time we have it paid off, it will finally be worth what it’s REALLY worth, LOL! ;)

[rebapiper]

I lived in Nevada for 15 years. Election fraud runs their election. The homeless are paid to stuff those ballet boxes. Done in small towns were they can go on noticed and get away with it, they get paid and told to get out of town.
They brag about the money the make. I'm in New York now and this state is no better. Election fraud, the people rise from the dead to vote here. You can't get the RATS of of office here. We have a PIMP for a governor and a want a be dictator that belongs to the RAT party but runs on any ticket that will confuse or fool those not paying attention as to who is really on the ballot, Bloomberg refuses to leave office and the RATS in office let him stay. It's almost impossible for a Republican or conservative to run in this state. Rick Lazio tried running against Hiltary and he exposed her for her TERRORIST TIES, those TERRORIST groups were supporting her campaign, she doesn't have to spent campaign money, The Clinton get away with money laundering and kick backs from companies and foreign countries and they get away with money taken in for campaigns and they also cry poor when they get caught. They got millions for books they didn't wright and when some did wright a book for them they couldn't sell them, so where did the money really come from.
Everyone cried Bush and his Saudi friends, it's all about oil. Well what ever happened to those loud mouths and why are they not crying Hitlary and Slick Willy, their all about the money,power,communist, socialist government and they are getting MILLIONS OF DOLLARS FROM THE SAUDIS WHY?????????????????? It was the Clintons and the oil and the Saudis but when ever you want to get away with murder or
cover your trail JUST CRY BUSH DID IT, or RIGHT WING CONSPIRACY.
CLINTONS ARE ALL ABOUT OIL, GREED FOR MONEY AND POWER.
IT WAS THE CLINTON THAT WERE USING THE OIL MARKET BUT FOUND OUT IT WAS MORE PROFITABLE AND A LOT EASYER TO GET AWAY WITH, SO THEY MADE A DEAL WITH SODDOM, SODDOM WAS PAYING OUT MILLIONS NOT JUST TO THE CLINTONS BUT THE RAT PARTY, THE RAT PARTY THAT THE CLINTON HAD ALMOST BANKRUPTED, HE ALSO WAS PAYING OUT TO THE UN AND MANY OTHER COUNTRIES AND ELECTED OFFICIALS. YOU ALWAYS KNOW WHEN THE RAT PARTY IS QUILTY OF SOMETHING OR THEY ARE ABOUT TO BRING HARM TO THIS COUNTRY OR ANYONE THEY WILL ALWAYS ACCUSE SOMEONE ELSE OF DOING THE VERY THING THEY ARE DOING. ALWAYS ACCUSE THE OTHER GUY BEFORE THEY CAN BLOW THE WISTLE ON THEM AND IT WORKS FOR THEM. LOOK AT THE CLINTONS NOW BRINGING IN BILLIONS AND I'M SURE THEY WON'T HAVE TO ANSWER FOR IT, THE CLINTONS AND SAUDI ARABIA.
THEY BOMBED KOSOVO, THE BOMBED AND KILLED,MURDERED INNOCENT CIVILIAN SERBS INSTEAD OF GOING AFTER SODDOM, IT GAVE SODDOM TIME TO GET RID OF THE WEAPONS OF MASDISTRUCTION. IT BOUGHT SODDOM TIME BUT PRES.BUSH TOOK THE TIME AWAY. THEIR WAS STILL A FEW LOOSE ENDS THAT HAD TO BE TIED. CLINTON ORDER THE SERBIAN OIL REFINERIES TO BE BOMBED AND THAT GOT HIM OFF THE HOOK WITH THE OIL INVESTORS,THE OIL BROKERS. HE HAD BOMB THE SERB OIL REFINERIES BECAUSE HE TURNED AWAY FROM IRAQ FOR THE LOVE AND GREED OF MONEY,MONEY,MONEY. I THING THAT IS ALSO ONE OF THE REASONS SAUDI IS GIVING THEM MONEY. BIDEN WAS ANOTHER LOOSE AND, HE HAD TO GET THE VICE PRESIDENTCY BECAUSE HE WENT TO IRAQ TO COVER UP THE CLINTONS MONEY TRAIL.
GOT A LITTLE BIT OF THE TRACK HERE.
THE CASINOS MADE MANY DEALS WITH THE RAT PARTY FOR BIG TAX BREAKS. MANY OF THEM WOULD FIRE THEIR OWN CITIZENS AND HIRE IMMAGRANTS THAT THE LEFT WOULD BRING IN, THEY WOULD BE REGISTERED VOTER OF HE RAT PARTY. A RAT PARTY,THEY HAVE PROVEN TO TRUELY A RAT PARTY, THEY WORK AT NIGHT BECAUSE THEY CAN DO THE MOST DAMAGE AT NIGHT AND THEY CAN FILL THEIR GREEDY POCKETS WHILE YOU SLEEP. THEY PASS THE BILLS AT NIGHT LIKE RATS IN THE NIGHT.

[pointsal]

WHEN IS THAT TEA PARTY GATHERING IN SEARCHLIGHT NEVADA????

Will Dirty Harry be there?