Bloomberg reports US Home Prices Fall Again:
Sept. 22 (Bloomberg) — U.S. home prices dropped 3.3 percent in July from a year earlier, the eighth consecutive decline, as foreclosed properties flooded the market.
Prices fell 0.5 percent from June, the
Federal Housing Finance Agency in Washington said in a report today.
Economists had projected prices to fall 0.2 percent from the previous
month, based on the average of 15 estimates in a Bloomberg survey. The
agency revised the previously reported May-to-June decline to 1.2
percent from 0.3 percent.
Foreclosures are boosting the supply of available properties and reducing prices, even as mortgage rates tumble to record lows. The time it would take to clear the market of homes for sale was 12.5 months
in July, the highest in more than a decade of data, according to the
National Association of Realtors. Banks seized a record 95,364
properties from delinquent borrowers in August, according to RealtyTrac
Inc., an Irvine, California-based seller of housing data.
This should be of no surprise to anyone that reads the BoomBust or
follows me regularly. I’ve been warning about the crash for over 5 years
now, and those who feel we are nearing a bottom need to take out their
spreadsheets and plug in some historical numbers.
Paying Subscribers are welcome to download the mortgage and credit
template that was used in the original US (Don’t) Stress (US) tests,
otherwise known as SCAP. We have taken the liberty to update the
template on a periodic basis for the government, since it appears they
are not forcing the banks to do so SCAP Assumptions Updated_09082010 Web Version.
This model shows a weakness in the Case Shiller method of following
prices in that the CS doesn’t include investment properties (usually the
first to go into foreclosure), new construction, and REOs. As a matter
of fact, Case Shiller actually looked slightly rosy as of late. The
following graphs were generated from SCAP Assumptions Updated_09082010 Web Version..
Notice how the federal numbers show falls where CS doesn’t. Signs on the street tell me the federal numbers are correct.
As a matter of fact, things are so bad that I believe banks will have
a perverse incentive to actually walk away. Now wouldn’t that be
something??? Next, we take a look into the home builder that makes more
money doing distressed investing than it does building and selling
homes.
Related content of interest:
- I
Told You Housing Was Going to Take a Downturn for the Worse. I’ll Tell
You Something Else, We Are in a Housing Depression! It’ll Get Worse
Until Market Forces Rule Over Government Bubble Blowing! - Anecdotal Evidence That Banks Are Hiding Depressed High End Real Estate
- As I Made Very Clear In March, US Housing Has a Way to Fall
- The Shortlist of the Shortlisted “Stocks to Short for 2010″: What We See as the Most Profitable Bear Postions for 2010
- Commercial
Real Estate Continues to Dropped into Foreclosure as the Landlords of
Said Properties Enjoy Skyrocketing Share Prices? Yep, Makes Plenty of
Sense - Recent Mortgage Loss and Credit Performance Commentary
- Australia: The Land Down Under(water in mortgage debt)
- Australia: The Land Down Under(water in mortgage debt), pt. Deux: Which Banks to Short?
- Aussi Bubble Video to Go With You Aussie Bubble Speculation?
From the Associated Press: “Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis. The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday. In all, banks repossessed 95,364 properties last month, up 3 percent from July and an increase of 25 percent from August 2009, RealtyTrac said.”
Now we know what the White House meant by Recovery Summer.
The banks are recovering all those buildings from all those deadbeats they should not have loaned money to.
The Associated Press report:
LOS ANGELES – Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis.
The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday.
In all, banks repossessed 95,364 properties last month, up 3 percent from July and an increase of 25 percent from August 2009, RealtyTrac said.
August makes the ninth month in a row that the pace of homes lost to foreclosure has increased on an annual basis. The previous high was in May.
Banks have been stepping up repossessions to clear out their backlog of bad loans with an eye on eventually placing the foreclosed properties on the market, but they can’t afford to simply dump the properties on the market.
Concerns are growing that the housing market recovery could stumble amid stubbornly high unemployment, a sluggish economy and faltering consumer confidence. U.S. home sales have collapsed since federal homebuyer tax credits expired in April.
That’s one reason fewer than one-third of homes repossessed by lenders are on the market, said Rick Sharga, a senior vice president at RealtyTrac.
“These (properties) are going to come to market, but very slowly because nobody wants to overwhelm a soft buyer’s market with too much distressed inventory for fear of what it would do for house prices,” he said.
As a result, lenders are putting off initiating the foreclosure process on homeowners who have missed payments, letting borrowers stay in their homes longer.
The number of properties receiving an initial default notice — the first step in the foreclosure process — slipped 1 percent last month from July, but was down 30 percent versus August last year, RealtyTrac said.
Initial defaults have fallen on an annual basis the past seven months. They peaked in April 2009.
Still, the number of homes scheduled to be sold at auction for the first time increased 9 percent from July and rose 2 percent from August last year. If they don’t sell at auction, these homes typically end up going back to the lender.
More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to RealtyTrac. The firm estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
In all, 338,836 properties received a foreclosure-related warning in August, up 4 percent from July, but down 5 percent from the same month last year, RealtyTrac said. That translates to one in 381 U.S. homes.
The firm tracks notices for defaults, scheduled home auctions and home repossessions — warnings that can lead up to a home eventually being lost to foreclosure.
Among states, Nevada posted the highest foreclosure rate last month, with one in every 84 households receiving a foreclosure notice. That’s 4.5 times the national average.
Rounding out the top 10 states with the highest foreclosure rate in August were: Florida, Arizona, California, Idaho, Utah, Georgia, Michigan, Illinois and Hawaii.
Economic woes, such as unemployment or reduced income, are now the main catalysts for foreclosures.
Lenders are offering a variety of programs to help homeowners modify their loans, but their success rates vary. Hundreds of thousands of homeowners can’t qualify or fall back into default.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. Nearly half of the 1.3 million homeowners who enrolled in the Obama administration’s flagship mortgage-relief program have fallen out.
The program, known as Making Home Affordable, has provided permanent help to about 422,000 homeowners since March 2009.
Regardless, many troubled borrowers have seen their efforts to get a loan modification stymied.
Larry Book of Winter Garden, Fla., was one packet away from a permanent loan modification from Chase under the Obama administration’s foreclosure prevention plan after more than a year of back and forth and one failed attempt.
But his modification never went through. Instead, his loan was transferred from Chase to IBM Lender Business Process Servicers in July and he was told he owed $9,562.62 and must bring his mortgage current by Sept. 15 or foreclosure proceedings will begin.
“It just becomes too exhausting,” Book said about the modification process. “That’s why some people walk away. But I’ve invested too much and given up too much to just let it go.”
Weekly Search & Social <b>News</b>: 09/28/2010 | Search Engine Journal
Hey there gang, it's time for another '7 Days of Search and Social' . Did ya miss me? Sure ye did. I was ill last week so for the first time, in a long time,
Obama Says Fox <b>News</b> Promotes 'Destructive' Viewpoint - NYTimes.com
Fox News Channel responds to President Obama's sharp critique of the channel in a Rolling Stone interview.
Fox <b>News</b> Poll: GOPer Johnson Leads Feingold By 8 Points In WI-SEN <b>...</b>
The new Fox News poll of the Wisconsin Senate race has bad news for Democratic Sen. Russ Feingold, with an eight-point lead for Republican businessman Ron Johnson.
halloween costumesWeekly Search & Social <b>News</b>: 09/28/2010 | Search Engine Journal
Hey there gang, it's time for another '7 Days of Search and Social' . Did ya miss me? Sure ye did. I was ill last week so for the first time, in a long time,
Obama Says Fox <b>News</b> Promotes 'Destructive' Viewpoint - NYTimes.com
Fox News Channel responds to President Obama's sharp critique of the channel in a Rolling Stone interview.
Fox <b>News</b> Poll: GOPer Johnson Leads Feingold By 8 Points In WI-SEN <b>...</b>
The new Fox News poll of the Wisconsin Senate race has bad news for Democratic Sen. Russ Feingold, with an eight-point lead for Republican businessman Ron Johnson.
Bloomberg reports US Home Prices Fall Again:
Sept. 22 (Bloomberg) — U.S. home prices dropped 3.3 percent in July from a year earlier, the eighth consecutive decline, as foreclosed properties flooded the market.
Prices fell 0.5 percent from June, the
Federal Housing Finance Agency in Washington said in a report today.
Economists had projected prices to fall 0.2 percent from the previous
month, based on the average of 15 estimates in a Bloomberg survey. The
agency revised the previously reported May-to-June decline to 1.2
percent from 0.3 percent.
Foreclosures are boosting the supply of available properties and reducing prices, even as mortgage rates tumble to record lows. The time it would take to clear the market of homes for sale was 12.5 months
in July, the highest in more than a decade of data, according to the
National Association of Realtors. Banks seized a record 95,364
properties from delinquent borrowers in August, according to RealtyTrac
Inc., an Irvine, California-based seller of housing data.
This should be of no surprise to anyone that reads the BoomBust or
follows me regularly. I’ve been warning about the crash for over 5 years
now, and those who feel we are nearing a bottom need to take out their
spreadsheets and plug in some historical numbers.
Paying Subscribers are welcome to download the mortgage and credit
template that was used in the original US (Don’t) Stress (US) tests,
otherwise known as SCAP. We have taken the liberty to update the
template on a periodic basis for the government, since it appears they
are not forcing the banks to do so SCAP Assumptions Updated_09082010 Web Version.
This model shows a weakness in the Case Shiller method of following
prices in that the CS doesn’t include investment properties (usually the
first to go into foreclosure), new construction, and REOs. As a matter
of fact, Case Shiller actually looked slightly rosy as of late. The
following graphs were generated from SCAP Assumptions Updated_09082010 Web Version..
Notice how the federal numbers show falls where CS doesn’t. Signs on the street tell me the federal numbers are correct.
As a matter of fact, things are so bad that I believe banks will have
a perverse incentive to actually walk away. Now wouldn’t that be
something??? Next, we take a look into the home builder that makes more
money doing distressed investing than it does building and selling
homes.
Related content of interest:
- I
Told You Housing Was Going to Take a Downturn for the Worse. I’ll Tell
You Something Else, We Are in a Housing Depression! It’ll Get Worse
Until Market Forces Rule Over Government Bubble Blowing! - Anecdotal Evidence That Banks Are Hiding Depressed High End Real Estate
- As I Made Very Clear In March, US Housing Has a Way to Fall
- The Shortlist of the Shortlisted “Stocks to Short for 2010″: What We See as the Most Profitable Bear Postions for 2010
- Commercial
Real Estate Continues to Dropped into Foreclosure as the Landlords of
Said Properties Enjoy Skyrocketing Share Prices? Yep, Makes Plenty of
Sense - Recent Mortgage Loss and Credit Performance Commentary
- Australia: The Land Down Under(water in mortgage debt)
- Australia: The Land Down Under(water in mortgage debt), pt. Deux: Which Banks to Short?
- Aussi Bubble Video to Go With You Aussie Bubble Speculation?
From the Associated Press: “Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis. The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday. In all, banks repossessed 95,364 properties last month, up 3 percent from July and an increase of 25 percent from August 2009, RealtyTrac said.”
Now we know what the White House meant by Recovery Summer.
The banks are recovering all those buildings from all those deadbeats they should not have loaned money to.
The Associated Press report:
LOS ANGELES – Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis.
The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday.
In all, banks repossessed 95,364 properties last month, up 3 percent from July and an increase of 25 percent from August 2009, RealtyTrac said.
August makes the ninth month in a row that the pace of homes lost to foreclosure has increased on an annual basis. The previous high was in May.
Banks have been stepping up repossessions to clear out their backlog of bad loans with an eye on eventually placing the foreclosed properties on the market, but they can’t afford to simply dump the properties on the market.
Concerns are growing that the housing market recovery could stumble amid stubbornly high unemployment, a sluggish economy and faltering consumer confidence. U.S. home sales have collapsed since federal homebuyer tax credits expired in April.
That’s one reason fewer than one-third of homes repossessed by lenders are on the market, said Rick Sharga, a senior vice president at RealtyTrac.
“These (properties) are going to come to market, but very slowly because nobody wants to overwhelm a soft buyer’s market with too much distressed inventory for fear of what it would do for house prices,” he said.
As a result, lenders are putting off initiating the foreclosure process on homeowners who have missed payments, letting borrowers stay in their homes longer.
The number of properties receiving an initial default notice — the first step in the foreclosure process — slipped 1 percent last month from July, but was down 30 percent versus August last year, RealtyTrac said.
Initial defaults have fallen on an annual basis the past seven months. They peaked in April 2009.
Still, the number of homes scheduled to be sold at auction for the first time increased 9 percent from July and rose 2 percent from August last year. If they don’t sell at auction, these homes typically end up going back to the lender.
More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to RealtyTrac. The firm estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
In all, 338,836 properties received a foreclosure-related warning in August, up 4 percent from July, but down 5 percent from the same month last year, RealtyTrac said. That translates to one in 381 U.S. homes.
The firm tracks notices for defaults, scheduled home auctions and home repossessions — warnings that can lead up to a home eventually being lost to foreclosure.
Among states, Nevada posted the highest foreclosure rate last month, with one in every 84 households receiving a foreclosure notice. That’s 4.5 times the national average.
Rounding out the top 10 states with the highest foreclosure rate in August were: Florida, Arizona, California, Idaho, Utah, Georgia, Michigan, Illinois and Hawaii.
Economic woes, such as unemployment or reduced income, are now the main catalysts for foreclosures.
Lenders are offering a variety of programs to help homeowners modify their loans, but their success rates vary. Hundreds of thousands of homeowners can’t qualify or fall back into default.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. Nearly half of the 1.3 million homeowners who enrolled in the Obama administration’s flagship mortgage-relief program have fallen out.
The program, known as Making Home Affordable, has provided permanent help to about 422,000 homeowners since March 2009.
Regardless, many troubled borrowers have seen their efforts to get a loan modification stymied.
Larry Book of Winter Garden, Fla., was one packet away from a permanent loan modification from Chase under the Obama administration’s foreclosure prevention plan after more than a year of back and forth and one failed attempt.
But his modification never went through. Instead, his loan was transferred from Chase to IBM Lender Business Process Servicers in July and he was told he owed $9,562.62 and must bring his mortgage current by Sept. 15 or foreclosure proceedings will begin.
“It just becomes too exhausting,” Book said about the modification process. “That’s why some people walk away. But I’ve invested too much and given up too much to just let it go.”
Weekly Search & Social <b>News</b>: 09/28/2010 | Search Engine Journal
Hey there gang, it's time for another '7 Days of Search and Social' . Did ya miss me? Sure ye did. I was ill last week so for the first time, in a long time,
Obama Says Fox <b>News</b> Promotes 'Destructive' Viewpoint - NYTimes.com
Fox News Channel responds to President Obama's sharp critique of the channel in a Rolling Stone interview.
Fox <b>News</b> Poll: GOPer Johnson Leads Feingold By 8 Points In WI-SEN <b>...</b>
The new Fox News poll of the Wisconsin Senate race has bad news for Democratic Sen. Russ Feingold, with an eight-point lead for Republican businessman Ron Johnson.
skin and vein centerWeekly Search & Social <b>News</b>: 09/28/2010 | Search Engine Journal
Hey there gang, it's time for another '7 Days of Search and Social' . Did ya miss me? Sure ye did. I was ill last week so for the first time, in a long time,
Obama Says Fox <b>News</b> Promotes 'Destructive' Viewpoint - NYTimes.com
Fox News Channel responds to President Obama's sharp critique of the channel in a Rolling Stone interview.
Fox <b>News</b> Poll: GOPer Johnson Leads Feingold By 8 Points In WI-SEN <b>...</b>
The new Fox News poll of the Wisconsin Senate race has bad news for Democratic Sen. Russ Feingold, with an eight-point lead for Republican businessman Ron Johnson.
http://www.businessweek.com/magazine/content/07_18/b4032066.htm
http://www.businessweek.com/magazine/content/07_18/b4032066.htm
http://www.businessweek.com/magazine/content/07_18/b4032066.htm
http://money.cnn.com/magazines/fortune/fortune_archive/1999/10/25/267811/index.htm
http://money.cnn.com/magazines/fortune/fortune_archive/1999/10/25/267811/index.htm
http://money.cnn.com/magazines/fortune/fortune_archive/1999/10/25/267811/index.htm
http://www.businessweek.com/magazine/content/07_18/b4032066.htm
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