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Housing crash is getting worse: report
MarketWatch ^ | May 9, 2011 | Brett Arends

Posted on 05/08/2011 10:12:53 PM PDT by george76

If you thought the housing crisis was bad, think again.

It’s worse.

New data just out from Zillow, the real-estate information company, show house prices are falling at their fastest rate since the Lehman collapse.

Average home prices are down 8% from a year ago, 3% over the quarter, and are falling at about 1% every month, according to Zillow.

And the percentage of homeowners in negative-equity positions — with a home worth less than its mortgage — has rocketed to 28%, a new crisis high.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Extended News; News/Current Events
KEYWORDS: 0bamasfault; crisis; debt; economy; estate; housing; housingcrisis; obamanation; obamanomics; obamasfault; real
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To: george76

Our property taxes keep going up and our roads are the sh*ts, our water, sewer and electrical are going up. Gas is going up and the state wants to raise taxes. The HOPE AND CHANGE just gets better and better.


41 posted on 05/09/2011 6:14:14 AM PDT by jetson
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To: Paradox

Zillow is to appraising what Roni Deutch is to tax consulting.


42 posted on 05/09/2011 6:18:20 AM PDT by Night Hides Not (If Dick Cheney = Darth Vader, then Joe Biden = Dark Helmet)
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To: time4good

I stand corrected. My original post was correct for all loans that were not for the financing of a principal residence. The Relief act is only in effect for a principal residence from 2006 to 2012. After that, it’s null and void.

http://www.irs.gov/individuals/article/0,,id=179414,00.html


43 posted on 05/09/2011 6:54:49 AM PDT by DH (When the tainted finger of government touches anything, the rot begins!)
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To: gleeaikin

I should of said 200 grand in equity. I still have the house though. It’s almost paid for. I’m not sure how selling short would affect credit rating. Make sure he or she looks into it with a professional before taking any action.


44 posted on 05/09/2011 7:45:56 AM PDT by Wiggins
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To: DH

“Most people are unaware of this little jewel.”

Except that if the person can show they were broke when they defaulted they do not pay any taxes on that income. Basically, every qualifies.


45 posted on 05/09/2011 8:04:57 AM PDT by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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To: Night Hides Not

Zillow is not an appraiser. It is pretty solid for a quickie overview of prices. It works off of completed sales in an area to give approximates of home values. Of course it does not take into account specifics of that particular home, but in a cookie cutter neighborhood, it is fairly accurate. Actual appraisers are nothing to write home about. Prior to the meltdown, they were over inflating to satisfy lenders and now they are way undervaluing to cover their a$$.


46 posted on 05/09/2011 8:20:04 AM PDT by Lazlo in PA (Now living in a newly minted Red State.)
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To: Lazlo in PA
Good points, Lazlo.

I'm just being snarky this morning. I'll go to zillow when I'm reviewing loan mod cases, just to see if they're in the ballpark.

Having done accounting work for homebuilders for 20+ years, I'm well aware of the games played in obtaining appraisals.

47 posted on 05/09/2011 8:28:14 AM PDT by Night Hides Not (If Dick Cheney = Darth Vader, then Joe Biden = Dark Helmet)
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To: dawn53
Only problem is, the folks who choose to honor their contract and stay in their houses are losing too because this type of behavior is driving prices even lower.

This is true. But we must go back to the original sin if we want to find the true culprit. The culprit is not the homeowners making a business decision to walk from a bad investment. Let's start with S&P and Moodys, the ratings companies that said the consolidated mortgage packages sold to investors were good. They were getting a commission off the sales. They were motivated to rate them as good so they could put money in their pocket. The homeowners are just making sure their money stays in their pocket.

48 posted on 05/09/2011 8:32:54 AM PDT by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: gunsequalfreedom

“Let’s start with S&P and Moodys, the ratings companies that said the consolidated mortgage packages sold to investors were good. They were getting a commission off the sales.”

####

Whoa!

The racist Communists via Fannie Mae certainly did enough damage on their own, however that appears to be a structural problem with the foundation of our markets.

Call me naive, but is this not a FUNDAMENTAL compromise, and conflict of interest at the heart of our financial system?


49 posted on 05/09/2011 8:41:33 AM PDT by EyeGuy (2012: When the Levee Breaks)
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To: george76
homeowners in negative-equity positions — with a home worth less than its mortgage

So what?

If they can make their monthly payments then they have no reason to default. Unless they are deadbeats.

50 posted on 05/09/2011 9:04:02 AM PDT by BenLurkin (This post is not a statement of fact. It is merely a personal opinion -- or humor -- or both)
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To: Tainan
"IMO, that lack of a “sustainable” manufacturing base is the root of all this crap."

Agreed. One of the things that I would like to build is a low cost, medium efficiency solar collector for my area and climate (steel frame, fiberglass, polyisocyanurate, copper-aluminum absorbers, regular tempered glazing), because shipping costs are high to get those here (not to mention shipping damage to absorbers). The tiny manufacturing idea is a no-go. Because even though I'm on a large, sterile, treeless acreage in the middle of nowhere, a County zoning ordinance prohibits any and all manufacturing outside of a barren, designated and outrageously expensive industrial park area (vacant land).

So there will be hobbies on the chance that the products from those hobbies might be more needed in our impoverished future.

Some counties are going so far as to outlaw the use of collectors that are not SRCC certified (expensive certification lab in hot Florida, of all places). Those high efficiency collectors are not needed where we have so little atmosphere between us and the sun and over 300 sun days per year.


51 posted on 05/09/2011 10:46:01 AM PDT by familyop ("Dry land is not just our destination, it is our destiny!" --"Deacon," "Waterworld")
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To: dawn53; Kartographer
"Well if I was their mother, I’d say, “Just because so and so does it, doesn’t make it right for you to do it.'"

Sadly, there will be collateral damage. All, avoid buying anything that you don't need. Become more self-sufficient every month, and learn to manufacture a useful necessity. After the default, we'll see small government and better business, political and academic leadership. A big government cannot go on without big revenues from manufacturing and cannot do so with an internationally worthless currency.


52 posted on 05/09/2011 11:44:02 AM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: EyeGuy
Call me naive, but is this not a FUNDAMENTAL compromise, and conflict of interest at the heart of our financial system?

Are you really saying that this is news to you?

53 posted on 05/09/2011 6:15:36 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: DuncanWaring

Sue me, I’m not a financial pro.

IF these ratings companies have such a conflict of interest, then why are their ratings and opinions so valued by the financial press, media, banks and other finanical institutions.

Maybe its “news” to them as well, because professionals whose business it is to assess risk were also caught up in this.


54 posted on 05/09/2011 6:34:56 PM PDT by EyeGuy (2012: When the Levee Breaks)
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To: EyeGuy
IF these ratings companies have such a conflict of interest, then why are their ratings and opinions so valued by the financial press, media, banks and other finanical institutions.

Why do people of African ancestry vote 98% of the time for candidates fielded by the Party of Slavery™?

55 posted on 05/09/2011 6:53:30 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: gleeaikin

Folks always ask me, “How will bankruptcy affect my credit?”

My answer is always: “The same way that dragging your SUV out of a rocky ravine will affect the paint job. Now, would you like the truck out of the ravine, or not?”


56 posted on 05/09/2011 6:57:04 PM PDT by Larry Lucido
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To: familyop

Dude you need to move to the rust belt, hire a minority front man for the face of the company, promise hundreds of “green jobs” and the Dems will stuff your pockets with money.


57 posted on 05/09/2011 6:58:35 PM PDT by nascarnation
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To: DuncanWaring

“Why do people of African ancestry vote 98% of the time for candidates fielded by the Party of Slavery™?”

###

Because they are ignorant, or racialists, or both.

The comparison is not valid with people who are supposed to be financial professionals, and whose living depends on accurate, unbiased information.

If it is such a joke that it is “news” to an outsider like me, let alone the pros, that these ratings are so tainted by impropriety, then why are they given any attention at all?

If this is a well-known fact even among the casual investor as you imply, then these companies would be be ridiculed, or at best simply ignored.


58 posted on 05/09/2011 7:17:12 PM PDT by EyeGuy (2012: When the Levee Breaks)
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To: nascarnation

No, thanks. This is a personal project at over 2 miles from the grid, over 300 sun days per year at over 9,000 feet, 110 mph wind load and 30-40 below zero in the winter. I won’t even take the tax credits from Uncle Samantha. I’ll build for wind, too.

http://www.otherpower.com/turbineplans.shtml

It’s going to be fun to watch the NIMBY-commie hags lose.


59 posted on 05/09/2011 7:59:57 PM PDT by familyop ("Dry land is not just our destination, it is our destiny!" --"Deacon," "Waterworld")
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To: EyeGuy

I’m not sure how it got to be that way, but in the last couple of years, it’s become obvious that the ratings agencies weren’t doing their homework and took the word of whoever submitted bonds for rating that “These securities have no chance of default”, issued the “AAA”, and collected their fees.

I have no idea why anyone would take them seriously any more.


60 posted on 05/10/2011 4:11:01 AM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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