National Home Prices Double Dip

CNBC ^ | 05/05/2011 | Diana Olick

[Rational Thought]

It's official.

Home prices have double dipped nationwide, now lower than their March 2009 trough, according to a new report from Clear Capital.

It was inevitable, and it was predicted (by me for sure) that a surge in sales of foreclosed properties and a big push by banks to facilitate short sales would force home prices down dramatically.

Sales of bank-owned (REO) properties hit 34.5 percent of the market, according to the survey, resulting in a national price drop of 4.9 percent quarterly and 5 percent year-over-year. National home prices have fallen 11.5 percent in the past nine months, a rate not seen since 2008. Add short sales, where the bank allows the borrower to sell for less than the value of the mortgage, and prices have nowhere to go but down.

[Rational Thought]

Media and Government officials can attempt to downplay or spin this, but it's not going away. It's getting worse.

So goes the Housing Market so goes the overall Economy.

[DaxtonBrown]

Bad time for my real estate business. My backup career as a pole dance isn’t looking good either.

[LomanBill]

 

Got Liar Loans?

 

Thank the progressively demoralized Rainbow "Fithcally Conthervative" Log Cabin interior decorator jackwagons and their "partners". They deserve it.

[scbison]

No kidding.. My house was worth $311K when I boaught it 4 years ago, now the value is down to $250K.. This sucks.

[Rational Thought]

Sad, but you're one of the lucky ones in comparison.

[LomanBill]

>>My house was worth $311K when I boaught it 4 years ago, now

Relax, in a few years it’ll probably be “worth” several million Baracki InlflatO bucks.

[scbison]

true..

[umgud]

This is not just a bad loan issue. Most everybody who bought during the bubble, paid inflated prices. There are many millions of folks stuck with under-water loans on homes that are deflated in value.

Two of my kids bought when prices had clearly started down. They had no idea values would continue down this far and both are now stuck.

[Raycpa]

If these are bank owned, then the price drop is imaginary. These bank homes have been gutted, have had no maintenance for years and the buyer has very little inspection options so consequently the homes are priced at deep discounts.

[SC_Pete]

I sold at the peak and told my kids NOT TO BUY!!!

Of course, one knew better and bought anyway. Ugh.

[org.whodat]

Idiots in government thought they could make up their own laws of supply and demand. The market will find its own bottom and it is much lower .

[Rational Thought]

The problem is the bank owned properties are the market, dragging down prices of other privately owned sales. Add to this the incredible number of bank owned properties which have yet to hit the market, combined with unavailable financing and a weak employment picture, and we're certain to see much lower prices in the months ahead.

What's still not talked about is these lower prices are likely to further increase existing foreclosures, due to more owners walking away from underwater properties.

[oh8eleven]

My house was worth $311K when I boaught it 4 years ago, now the value is down to $250K
Did you buy it as an investment or as a place to live, i.e. a home? If you're not planning on moving real soon I wouldn't worry about it. Things happen.
I bought a house in 1977 (7% mortgage) and planned on moving in three or four years. But by the early 80s Carter's economics had driven mortgage rates up to 15% and more ... no move.
Thirty three years later I'm still here, but with no mortgage since 1997, I've put a lot of money into the bank.

[MichiganConservative]

What better way to rip off the middle class than to inflate house prices and then let the bubble they created burst, as all bubbles do?

Bubbles are created by easy credit. Who controls that? The banksters who control the credit. Their lackeys in government help, of course. The government encourages everyone to take the crack and get screwed.

[Raycpa]

It seems to me we have two distinct markets and one average.

Many families are going to avoid the bank owned properties and short sales because of the risks and the complications (getting these banks to the closing table and getting good title is very hard).

Other families who take the risks and persevere will often be rewarded for their risks.

I agree the appraisals for the “good homes” are going to be hard to get but that doesn’t mean the value of those homes are down, it means the comparatives are not truly comparative.

The one getting hurt will be the one who needs to unload the home when many buyers have lower cost options. Their hold time will be greatly increased.

[randita]

My house was worth $311K when I boaught it 4 years ago, now the value is down to $250K.. This sucks.

Sorry to hear that. With inflation on the rise, the Fed may need to tamp things down by raising interest rates. Don't know if this is an absolute, but I read that for each point interest is raised, it shaves off another $10K from the sale estimate of your home-ugh.

[Buckeye McFrog]

I have to say....as I walked around new housing developments five or six years ago, and every time I looked at a house my gut reaction was “it’s not worth that much”....probably is telling me that they were not worth that much.

[struggle]

I sold my house at price in 2009.

Now I’m looking to buy a house valued at 156K for 125K.

[Arrowhead1952]

My house was worth $311K when I boaught it 4 years ago, now the value is down to $250K..

Our house value dropped over 16% in just the past year. It's dropped almost 40% from four years ago.

[lodi90]

“If these are bank owned, then the price drop is imaginary. These bank homes have been gutted, have had no maintenance for years and the buyer has very little inspection options so consequently the homes are priced at deep discounts.”

Sorry but not true. We just purchased a fannie mae owned property. It is a 4 year old home in good shape and included a $8,000 water softener. The only thing missing was the kitchen appliances. Most of the foreclosures we looked at were not trashed. It really depends on what the previous owner and their renters did.