Posted on 04/27/2010 7:08:06 AM PDT by jmaroneps37
Happy days are here again, right? With the 27% jump in new home sales, announced last week, the real estate crisis is over and we can move on – right? Not by a long shot.
The New York Times latest giddy article about the end of Obama’s recession entitled “From the Mall to the Docks, Signs of Rebound” is propaganda.
The Commerce Department told us new home sales grew to 411,000 last month; the biggest jump in monthly activity in 47 years: Meaningless.
A sober look at the numbers proves the Times is wrong again. The “big jump” was based on February’s all time low of 324,000.
The “good” price news on these new homes is not exactly what we were led to believe either. While the median sales price rose to $214,000 even that was down from February.
A recent report from LPS Applied Analytics grimly announced the number of foreclosed homes in the possession of banks and other lending institutions is so large it would take 103 months to clear the backlog. That means it will take more than 8 years to get to zero PROVIDED there were NO MORE new foreclosures.
The raw number of foreclosed homes is 1.1 million. This is up 20% from last year, and doesn’t include the vast number of homes in arrears that are NOT being moved on by lenders because they are simply incapable of managing this huge number of properties.
Overwhelmed courts
Lenders holding delinquent mortgages are frequently electing to do nothing. The number of these distressed properties in many counties has their civil calendars blocked out for YEARS. Demands for foreclosure relief fall on deaf ears and there is no reversal in sight.
Happy days aren’t here no matter the Times and others say: It’s all just a mirage.
(Excerpt) Read more at collinsreport.net ...
Let’s see what happens to housing sales after the tax credit expires on Friday.
Does anybody in the mainstream ABCNNBCBS have ANY morals anymore?
Does ANYBODY in those groups do ANYTHING but read (or write?) White House press releases and dnc faux fax memo’s?
I just refied. My credit score is 850. I have never defaulted on a loan. All my bills are current. I have 50% equity in my house. Yet it took me two months and endless paperwork to get the refi. Just who is getting an easy loan these days?
Exactly
1. Commercial Real Estate Collapse
2. More Bank Failures (See #1)
3. Continued High Unemployment through 2010
4. Ominous new taxes and regulations will keep #3 in place
5. Rising Energy & Food Costs
Recovery? Not so much...
A story in our local (SC) paper today showed new residential construction permits DOWN by double-digits.
The Goebbels propaganda machine had nothing on these evil b*st*rds.
I propose that, henceforth, we refer to the White House press secretary as Herr Gibbs, the president as Der Fuhrer, and the Associated Press as Der Zeitung.
Can you send me freep mail where you went for this refi. My husband and I are in the same financial position you have stated and we are unable to refi. Why? “well if you were behind or underwater we could help you”.........I am ready to draw blood I am so irritated.
Watching the Press tout this as an “amazing recovery”, etc,,, while in ‘03, all we heard was how it was a miserably weak “non-revovery” (Bush was President says it all) and at the same time, unemployment went below 5%, the GDP was over 5%. Proving the tax cuts had a major impact.
The dishonesty of the press and the administration is beyond pale, not to mention the double standard. Makes me sick!
My prediction is that May and June will be disasters. Anybody who was going to buy a house under $400,000 in the next 6 months has got a contract on a house by now.
The banks have a massive shadow inventory of homes on which the mortgage is delinquent. They are holding off on the foreclosures because they do not want to crater the market and because they do not have the staff to handle the volume.
The procedures put in place by Congressman Frank and NY AG Cuomo have made residential mortgages a nightmare to obtain.
In addition, just imagine you had credit scores in the mid 600’s (which used to be considered average scores), it's almost impossible to finance anything.
Unless there are millions of cash buyers, this housing market will never recover without the availability of financing, regardless of what statistics the Government wishes to promote.
103 Months to Clear Housing Inventory
this is directly in line with the predictions in Harry S. Dent’s book The Great Depression Ahead.
The good news is that we as a people will emerge with far less debt after this economic winter...
The New York Times is guilty of journalistic malpractice. What a disgrace. I just don’t get why they want to mislead like this. These problems will never be solved until we face the facts. It’s just madness.
I predict that the May data on home sales will show an 'unexpected' decline.
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