Posted on 06/23/2010 7:21:42 AM PDT by blam
New Home Sales Suffer Enormous Collapse
Vincent Fernando, CFA
Jun. 23, 2010, 10:03 AM
May new residential home sales were just 300,000 vs. 423,000 expected according to Fact Set consensus, based on the reported seasonally-adjusted figure.
Census Bureau:
Sales of new single-family houses in May 2010 were at a seasonally adjusted annual rate of 300,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 32.7 percent (±9.9%) below the revised April rate of 446,000 and is 18.3 percent (±13.0%) below the May 2009 estimate of 367,000.
The median sales price of new houses sold in May 2010 was $200,900; the average sales price was $263,400. The seasonally adjusted estimate of new houses for sale at the end of May was 213,000. This represents a supply of 8.5 months at the current sales rate.
See the official release here >
[snip]
(Excerpt) Read more at businessinsider.com ...
Heh, I bought years before the runup in property prices. Wonder if I’ll end up owing more than I can sell for anyway!
This was... unexpected, of course. In truth, it is disastrous even by Obamanomic standards.
hope and change.
“All your homes are belong to us!!”
They’ll use this as an excuse to dick with the natural order of things even more.
More green shoots?.....no wait.........wrong thread.........
Good time to buy a house!
Gov stopped paying people to buy houses...
Just my opinion but..
Traditionally, housing prices require 10 years to “turn around”. There is probably 6-8 more years of decline and stagnation in housing prices ahead. At this point, those who made money on the last extended boom are still getting wrung out of the business.
Here audio of Bush’s speech pushing home loans for totally unqualified minorities.
http://www.youtube.com/watch?v=MqR15H0gNBU
That chart you posted looks like an EKG of a massive heart attack victim going downhill fast.
Bush bashing seems a little pointless right now. I’m not going to defend the man, but I’d like to point out that bashing Bush and being silent on what the Democrats are currently doing makes you look like a Leftist.
If you bought before 2003, you are fine.
Maybe Obama will summon all reluctant home buyers to a “dressing down” at the White House.
The audio speaks for itself.
Good time to buy a house!
Take your time. There is no hurry and there are a lot of other shoes to drop this summer and fall. If you are shopping for a home, wait until December to make an offer. On any offer, underbid their asking price by at least 10%. No one buys in Dec or Jan, its the best time to shop.
This is way past W’s 2008 economic disaster. People need to:
1. Get over blaming Clinton for everything, as they did for years and years;
2. Get over blaming W for everything, as they will for years and years;
Hey, but at least this drives more illegals away!
Who in their right mind is going to take on a mortgage with so much uncertainty still in the job market?
Something’s wrong here.
I read the original release and didn’t see the word “unexpectedly”
Here audio of Bush’s speech pushing home loans for totally unqualified minorities.
http://www.youtube.com/watch?v=MqR15H0gNBU
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Bush bashing seems a little pointless right now. I’m not going to defend the man, but I’d like to point out that bashing Bush and being silent on what the Democrats are currently doing makes you look like a Leftist.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Of course your defending him. lol
And makes you look like an utter fool when you ignore it, or suggest it’s only one person’s or just one political party’s fault.
BTW, you using the term, “Stop the bashing” is exactly what the leftist constantly said of Republicans when referring to Clinton.
That pic is hilarious!
So, now I invite you: will you say bad things about Obama? Frank? Dodd? Democrat policies over the past 10 years or more?
Wall Street doubled over in anguish yesterday as the latest numbers on existing home sales hit the news wires. I must say that I am totally confused as to why the decline was any kind of surprise, however. The mainstream press dutifully expressed every emotion from grief to even outrage as the number was reported and analyzed.
Most people have quickly forgotten that the biggest reason there were so many sales to begin with was due to the fact that Congress had waded into yet another market and propped it up with cash on the barrelhead for anyone willing to take the leap. When they lured all the first time buyers they could, they took the next logical step and offered the cash to pretty much everyone else.
Might as well put your money in a house. O will destroy the financial markets even further and what is left will be taxed mightily.
Not only that, but lenders are facing much more stringent requirements now (believe it or not) for funding, especially for down payments. I recently called my usual mortgage gal to ask about purchasing an investment house, to see if they were still doing piggy-back loans for the down payment and she said no one was doing them anymore. You take away the ability for people to get that 20% down payment, and it becomes almost impossible to purchase a home for most people.
When we get a sufficient number of Republicans who commit to letting housing and housing backed assets find their market price, then I will agree that it's the Rats' problem.
At present prices.
a real estate double bubble about to burst?
No, it makes people like me and dragnet2 want to scream, "This mess started under Clinton, got worse under Bush and is now coming to a head under Obama" because too many "conservatives" turned a blind eye to the damage Bush did to economy because he had an "R" next to his name.
Your probably right, 2003 is the inflexion point. I bought in May 2003, probably right on that tipping point. 7 years of home ownership and significant investment in upgrades (essential ones, not cosmetic ones. Things like a new roof, new furnace, etc) and I think I might be able to get the same price I paid. If I'd bought in 2004 I'd be under water for sure.
That's what the people in the Feb-April 2010 part of the chart thought. The adage "Don't try to catch a falling knife" still applies. We've got a long way to go, and demographics indicate we ain't a'comin back.
Good God... Stop with this idiocy....I have nothing but contempt for these sell out traitors and anti-American leftist freaks.
Ask yourself.....Do ya think if Bush were a great, or even a good President, we'd now have a Chicago hard core leftist for president?
This is like a political twilight zone...Surrounded by zombies...wow...
LOL, talk about idiocy. It all Bush's fault? Hummm, getting a little tired of that crap.
” Your probably right, 2003 is the inflexion point. “
It was in Cal. Vegas, and Phoenix, at any rate.
My house in L.A. went up 20% in 03, and 50% in 04 ;-)
Government-issued cardboard boxes, anyone?
You were talking economics, and you were criticizing Bush. Fine. You were being silent on Obama. Hmmm. My Liberal neighbors in MA do exactly the same thing. They won't breathe a word against Obama and they declare that everything wrong in the world in Bush's fault.
This is what you were doing.
I, on the other hand, was attempting to take an even-handed approach and say that Bush made many mistakes and Obama made many mistakes. Ask me to take a crack at a politician of either party and I will happily start swinging.
I invited you to criticize Obama and you came up with "Do ya think if Bush were a great, or even a good President, we'd now have a Chicago hard core leftist for president?” Okay. Not bad. I see that you're calling Obama some names. Good for you. But you reflexively declare that President Obama is another example of "Bush's fault".
And then you call me a zombie.
I gotta say that I think I'm being pretty measured in declaring that the current problems stem from Bush and Obama, Democrats and Republicans alike. You, on the other hand, seem to have a bug up your keister when it comes to Bush.
[Money Pit movie poster]
Just wait until the sequels come out - “The California Pit”, “The [insert blue state name here] Pit”, ad nauseum.
Soon 1930s will be referred to as “The Good Ole Days”.
At this point it seems the CZARS are in charge. He’s too busy playing golf on our behalf.
Orders come down from on high and there is a sense of unreality about his leadership.
Way back when, Senator Inouye of Hawaii threatened the first President Bush with impeachment if the first Gulf War didn’t go well.
Now we have everything going WRONG and there is continued adulation by the far left for their messiah.
The media has so many fronts to attack on his behalf they just can’t keep up.
Great point Notary Sojac!
I assume you are a notary so I will pose a question to you at the end of this post.
First, allow me to quote Neil Garfield from LivingLies:
“We’re all working for the government now”
Editor’s Note: The cost of taking over foreclosed homes greatly exceeds the principal reductions that are inevitable anyway. Either way the taxpayer foots the bill. As usual, big business and government have taxpayers paying the higher bill.
Here is how the narrative ran. The trillion dollar banks and some “smaller” ones used all their influence over the media and lawmakers to get the narrative going in the direction of “why should anyone get a free house?” or “Why should HE get a break on HIS mortgage just because he stopped making payments? I’ve been the good citizen making my payments and I don’t see anyone giving me a break.”
The answer is as simple as it was when I first voiced it three years ago. This is not a mortgage problem, it is a fraud problem that will bring down the whole economy. And victims of fraud have a right under our existing laws to be made whole, if possible or at least given some relief from the fraud enabled by highly sophisticated financier leveraging off asymmetry of information.
By getting us fighting amongst each other about a non-issue, the banks, media and lawmakers distracted us from the real issue. The result was a bailout for the fraudsters and a nightmare for the rest of us whether we got hurt directly or not. In fact, we are all hurting from the foreclosure mess either directly or indirectly. Property values are going lower and lower, nice neighborhoods have turned to urban blight, and upscale neighborhoods are seeing ugly signs go up inviting unwanted buyers who either look for the quick buck or who don’t fit with the old context of the neighborhood. Jobs are being lost by everyone, not just people who are losing their houses in foreclosures.
The plain truth is that both the homes and the securities sold to finance the mortgages were inflated through fraudulent means. The resulting fall-out continues to drag median income down and with it, the price of housing. Everyone knows the securities were overvalued, everyone knows they are worth far less than represented, and that the reason is the appraisals of the homes and viability of the loans were simply a lie. The ONLY possible end to this under any scenario, is that the real value is going to be reflected in the market place whether we like it or not.
That means in simple language that the securities are going to be marked down to their real value and the home loans, which were also securities in this scheme must meet the same fate. It doesn’t matter what people in or out of power want. The cat is out of the bag and nobody is going to pay the premium that sellers and banks are looking for.
Source URL: http://livinglies.wordpress.com/2010/06/20/were-all-working-for-the-government-now/
Now the notary question...do you find anything unusual about this “Assignment of Mortgage” filed at the Clerk of Court and used in the execution of a foreclosure case?
http://www.scribd.com/doc/32979257/Cheryl-Samons-David-J-Stern
Why would anyone buy retail with all the property on the foreclosure market?
The same folks that got fannie/freddie financing and put the whole system in jeopardy will continue receiving the same deferential treatment. Fannie/freddie has now been nationalized so they are no longer subject to the same scrutiny as mtg brokers or banks that are not part of the big four. JMHO.
Oh, yeah, they are back to basics on all loans in all areas these days. 20% down on homes. Ugly interest rates for autos if you don’t have impeccable credit. Etc.
The barn door was left open, the animals ran out, they set the barn on fire, it has burned to the ground, the fire department’s water cannons have turned the lot into a swamp, and mosquitos are breeding . . . and so now the farmer decides to close the door. Why not? It should have been closed in the first place.
What the chart doesn't identify are houses that are in older, established neighborhoods that are already occuppied. Those houses aren't going to bring what they could have in '05, but aren't nearly as bad off as unsold houses in empty developments.
You take away the ability for people to get that 20% down payment, and it becomes almost impossible to purchase a home for most people.
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At present prices.
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Where most of Americans net worth is still rapped up in their homes value.
Sigh.
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