Posted on 07/28/2010 3:24:12 AM PDT by Libloather
Don't hold your breath for a bounce in home prices
By ALAN ZIBEL (AP) – 1 day ago
WASHINGTON — Thought the housing crisis was over? Not quite.
Despite four years of falling prices and recent signs that they were finally bottoming out, homes are expected to lose still more value in many metro areas over the next year.
Parts of the country already pummeled by the housing crisis, like Las Vegas, Phoenix and Miami, will be hit hardest. But even some places that have rebounded or held up relatively well — including New York, Los Angeles and Washington, D.C. — will suffer, too.
That's the conclusion of economists who have been reducing their estimates for home prices as the outlook for the economic recovery has darkened. The number of homes for sale or headed for foreclosure is so high that they think prices will be even lower by next July.
Because housing is such an important engine of the economy, lower prices could dim the recovery. When home values fall and people have less equity, they tend to cut back on spending. And as prices decline, potential homebuyers stay on the sidelines, slowing sales even more.
Earlier this year, analysts said they thought home prices had finally reached their low point and were ready to start rising slowly in most areas of the country. Now, they think the actual bottom could be nearly a year away.
(Excerpt) Read more at google.com ...
RUSH: "Thought the housing crisis was over? Not quite. Despite four years of falling prices and recent signs that they were finally bottoming out, homes are expected to lose still more value in many metro areas over the next year. Parts of the country already pummeled by the housing crisis, including Las Vegas, Phoenix and Miami, will be hit hardest. But even some places that have rebounded or held up relatively well -- including New York, Los Angeles and Washington, D.C. -- will suffer, too."
Now, did you know what the three wealthiest counties in America are now? Outside Washington, DC, in Maryland and Virginia, three wealthiest counties in America. Yep. And that's new. (interruption) Well, that's counties. Palm Beach is a ZIP code. The wealthiest ZIP code I think is still Jupiter Island up north, but I'm talking about counties, the wealthiest three counties are outside Washington, DC, now.
I was just talking in the last hour about, have you noticed there are some people not doing badly. There are some people prospering. You know who they are. Do you know what their source of revenue is? It's the government. They're the ruling class. The average home price, Standard & Poor's Case-Shiller index, 20 big US cities has forecasted a drop of nearly 2% this year from a year earlier. So the housing bubble continues to bubble downward. This is where we are. And there's no recovery, and there's no sign of one, and there's not really any program in place to alleviate this problem because the government can't do it.
I mentioned this last hour, "In Miami, nearly a quarter of mortgage borrowers have missed at least three months of mortgage payments or are already in foreclosure, according to Moody’s. That’s the highest level in the country." LeBron James will help down there. "In four other Florida cities -- Fort Lauderdale, Cape Coral, West Palm Beach and Naples -- the proportion exceeds 15 percent. The same is true for Las Vegas." And Obama says we've turned a corner, we're bank from the brink. He said we're back from the brink but he still can't get us over the hump, because he doesn't want to get us over the hump.
http://www.rushlimbaugh.com/home/daily/site_072710/content/01125104.guest.html
How was this ever sold as a crisis needing the attention of the gubmint and the application of your money ?
” Earlier this year, analysts said they thought home prices had finally reached their low point and were ready to start rising slowly in most areas of the country. Now, they think the actual bottom could be nearly a year away. “
It’s been my observation for years that virtually every Real Estate ‘analyst’ seen on TV or quoted elsewhere is in some capacity a shill for the Real Estate Industry...
If they’re now saying ‘a year away’, I figure the real outlook is probably closer to 5-10 years...
You’re right. For the US the housing market was the last of our industry that could not be exported and it will never return to demand levels of old. The next housing shortage will be in apartments. Watch for government Guarantee Loan Programs for apartment building which will create a new housing bubble. the government needs to get out of the Bailout programs and let the free enterprise do is work.
I remember my first mortgage payment of $115.00 a month.
It was tough to make but I never fell behind.
Todays mortgages are in the $1500 to $2000 dollar range and if you fall behind you owe $6,000 dollars.Add a $500 dollar a month car note and your hole get’s deep real fast.
Not too many parents can bail you out of that kind of note.
I live in the WDC area. You would be shocked as to how prosperous most are around here. When are all of you going to awaken and starve the beast? However, in the meantime, get to work, shut up and make sure you pay your taxes. Let the good times roll.
This story is not exactly true. Prices for June in Arlington, Virginia — just across the river from Washington, D.C. — rose 3 percent (median) and 7 percent (average) over a year ago June. The average time on the market for a house has fallen to 47 days, 32 in some zip codes. Inventory has fallen to 4 months supply — a supply-demand situation that drives up prices. All because of the ever-bloating government.
“Inventory has fallen to 4 months supply — a supply-demand situation that drives up prices. All because of the ever-bloating government.”
Indeed! My kids got in a bidding war with four other couples LAST DECEMBER 2009 over a house in Arlington.
The DC metro area is supported by the government and everything associated with it in the defense department.
“I remember my first mortgage payment of $115.00 a month.”
Mine was $250.00 with 20% down for 15 years interest rate about 8% before the Carter years kick in. Not much of a house but it was home.
Right you are, WashingtonSource. We bought our house in Arlington VA (22207) ten years ago for just over 400K. Today I could sell it easily for 750K.
We are indeed prosperous here in the Washington DC inner suburbs. The schools are well funded and high-quality; municipal services are excellent; we have world-class amenities such as the Smithsonian museums, the Kennedy Center. etc.; the restaurants are full; etc., etc. Whenever I visit relatives in NC, it’s like we’re living in different universes. They’re dealing with high unemployment, crashing property values, and service cutbacks.
All that being said, the insulation of Washington DC is inevitable. Any capital city depends heavily on government, and so its economy will always be a function of guaranteed government spending. We shouldn’t allow ourselves to conclude that somehow Washington has morphed into something it wasn’t twenty or fifty or even one hundred years ago. It has always been thus!
*All that being said, the insulation of Washington DC is inevitable. Any capital city depends heavily on government, and so its economy will always be a function of guaranteed government spending. We shouldn’t allow ourselves to conclude that somehow Washington has morphed into something it wasn’t twenty or fifty or even one hundred years ago. It has always been thus!*
No kidding. It’s the power center of the freakin’ universe but to listen to people around here it should be as hoppin’ as opulent as Ulan Bator. Ridiculous.
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