John Wake

Phoenix Home Prices Now Down 51%

For Phoenix, on the other hand, the pending home sales are now off the chart. That supports the belief by some real estate data geeks that the median home price bottomed out, at least temporarily, in April. Now remember, that is the median for the entire metro Phoenix area. Prices in many areas within metro Phoenix still have a long way to fall.

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Haven't First-Time Homebuyers Heard of Roubini?

The housing market will bottom out long before the banking industry.

When housing improves, sure the banks can make some money on new loans but that income will be a drop in the bucket compared to the losses hanging over their heads from those 2005-2007 loans with huge negative equity. Years from now that homeowner will retire or lose his job or get divorced or have a kid and will move out. And when that happens, the banks will end up forgiving tons of debt in a short sale or will foreclose and lose a ton of money that way.

Don't tie the housing industry to the banking industry.