Hyman

Disappointing New Home Sales Continue to Pummel Homebuilders

Some builders are really slashing prices on brand new homes. Building materials have dropped in cost, and construction workers are willing to work for reduced paychecks. A developer in Rye NY is actually selling brand new custom made homes by the water at 33% under recent comps, giving buyers instant equity.

The Housing Crisis is NOT Over

We need to factor in the soaring fuel costs, weakening economy, and tightening of mortgage availability. Throw these into the mix, and we have a weak market even if prices correct back down to historical income ratios.

Hitting the Reset Button On Home Mortgages

This entire idea is just totally absurd. All that is needed here is for the government to compel lenders to extended their initial teaser rate monthly mortgage payments for another 5 years or so. By that time the market will have improved and the homeowners will have a lot more options. This approach would automatically weed out all the speculators and the owners who could not afford to buy and live in these homes to begin with.

Sellers' 'Hopeful Overvaluation' Dragging Out Housing Bust

The reality is that eventually these homes will go back up in value, and almost all owners know this It could take 2, 5, 10 years or longer. It can be easier for people to just stay in their homes and wait out the bust, than to sell them at a depressed price. The only ones who are actually being hit head on by current market conditions are the ones who have to sell, whether it be because of a job transfer, divorce, or another "absolutely must relocate" situation.

Housing Crash Unaffected By Fed Actions

The reality is that almost everyones house is going to nosedive in value. We can expect to see late 1990s home prices before this is all over. Will the economy be clobbered? Of course it will, and many businesses will fold and we'll see tons of unemployment. We will be unhappier, poorer, and our standard of living will crash, but the bottom line is that we will survive.

28/36- Why House Prices Must Fall

This excellent article totally hits the nail on the head. We have been game playing with "creative" mortgages for the last ten years, and now economic reality has finally crashed through the illusion. The credit pendulum will soon swing past what we had 10 years ago, and all these old mortgage loan formulas will be back. The result? Prices will plunge down to what the local wage earners can actually afford to pay. We are looking at 35%+ drops in home values, back to around 2001 levels or even lower. The situation could be much worse for California, Florida, Arizona and Nevada home owners, who have seen the maximum real estate bubble effect over the last decade.

Pulse of the U.S. Housing Market

The problem is that home prices just got way out of sync with incomes. The reason prices soared was that almost anyone with a pulse could get zero or low down no doc loans. Now economic reality has set in, and home prices will have to plunge down to the levels that finally meet the incomes of the local workers. Prices will drop down at least 35% to around 2001 levels before we see any real stabilization.

The Mortgage Crisis: Time for Real Solutions

Why all the greed and no compassion? These families and their children are being thrown out into the streets! The govt. should help these people out, even if they made some mistakes. People were just following the American dream, trying to get a roof over their heads and maybe building up some equity. Isn't trying to own a home and move up the financial ladder something that we are all encouraged to do from the time we are in first grade? A government's role is to help out its citizens, so now is the time for them to help these people out.