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no home buyer credit
It's never the end when you can extend and pretend.
Next headline: Barney Frank proposes raising tax credit to $16000 to stimulate housing recovery.
Double down baby!
Why not give away houses Barney ?
They need this "worse than expected" numbers to justify QE v2.0. Isn't it funny that these "bad" housing numbers came right before FED meeting, where they would discuss exit strategies and what to do about the MBS purchase program that is going to expire at the end of March?
you have to know how to parse washington talk....
they are planning exit strategy from qe 1.0 so
that they can figure out an entrance strategy
When will the financial terrorists who destroyed the American Dream of Home Ownership be held accountable?
We will have no recovery until the debt is removed from the system and rule of law is restored
These were not reckless or risky loans, but a criminal enterprise where lenders, credit rating agencies and investment banks all participated.
Decades of prudent, proven, REGULATED, safe and sound lending guidelines were abandoned in order to encourage loan originators and borrowers to commit fraud.
C. Loan documentation. An institution should establish and maintain loan documentation practices that:
1. Enable the institution to make an informed lending decision and to assess risk, as necessary, on an ongoing basis;
2. Identify the purpose of a loan and the source of repayment, and assess the ability of the borrower to repay the indebtedness in a timely manner;
I was forced to close my mortgage and real estate offices because it was clear that anyone who purchased during the bubble years would be financially devastated if NOT destroyed for doing so. 35% of all loans in my market were Option ARMs F-ing ridiculous
Just look at the comments by the insiders in support of nontraditional mortgages: Liar loans, subprime, Option ARMs, 100% financing, etc.
Here were my comments
The only comment I have is "Well, duh".
Anyone can see the vacant houses that the banks are not even attempting to sell, so why buy now? Better to wait for new incentives, cheaper housing and lower mortgage rates, all of which will come if people are patient...
Once the illusion of needing to move quickly to get the property (which leads people to make one of the biggest financial decisions of their life far too rashly) has gone, it takes many years to come back.
As much as it pains me there is only ONE solution to the housing crisis, atleast according to me.
Claw back all the mortgage payments every homeowner has made since January 1, 2000. Take that money and apply it directly to the principal of the outstanding mortgage. This would effectively reduce the amount of debt outstanding and reduce the amount owed going forward. Rework the mortgages as of January 1, 2010 and start anew. Yes, this hurts the banks, but who the fuck cares they screwed the pooch to begin with. This would undoubtedly put MOST people back above water, would mostlikely create an instant FLOOR in housing prices and would actually STIMULTATE the ECONOMY since people could come out from under the debt that is holding spending down.
Yes...principal forgiveness. AND if the banks don't like it, they do not have to accept the terms of the proposal, but they must immediately foreclose on any property where the homeowners is more than 60 days in arrears, and mark the property to market...accordingly.
Yeah....math hurts.....deal with it banks.
Your idea sounds great, but that would be too good to be true.
Despite the fact that the US does not save as much as Japan which is probably worse, what makes the govt think that they are not facing a japanese-style recession?
I'd like to know from you guys what you think that should be done in Japan to get it out of the 20-year downward spiral?
Based on new home sales only, this is very misleading, take a look at all home sales over all highest volume since 2006. Look at the big picture.
Well i guess this shouldnt surprise anyone.
Wouldnt call it double dip though, there wasnt any real up to dip from.... (please correct my english, im learning by trial and error)
It's not a double dip, it's the fact that banks are refusing to put their REOs on the market so that way they can create an artificial spike in housing prices: Constrict supply while demand is high because of the government incentives.
How many new homes are there on market? The answer is 273,000 as of Dec 2009.
How many new homes were on the market a year ago? It was far higher at 350,000 as of Dec 2008.
I can tell you if there are fewer homes on the market, you will most likely have fewer homes sold. That alone is not a good metric.
Actually, the number of new homes sold in Dec 2009 was down by far less than the number of homes on the market was. This is a very bullish sign. The fair comparison is to use a dimensionless number. The inventory is hugely below where it was in Dec 2008. One should look at the ratio of homes sold vs. homes on the market.
In fact, new homes on the market are selling at a rate that is 38% higher than it was a year ago. There is a vast underbuilding the the past 12 months-- similar to in the 1990's. Home prices are beginning to rise strongly in some areas.
Holy shit...Did you just return from a CNBC seminar?
Hey Anon 208411
That's some mighty tasty Kool-Aid.
At the 2009 annual sales rate, it translates in sales of 1025 homes per day. Therefore, on any given day there were several hundred homes in inventory for any one sold.
You are witnessing the UNSINKABLE AMERICAN CONSUMER- it hit an iceberg 2 years ago.
The tragedy is the Captain is still calling for more coal in the boilers.
With 2009 new home sales of 374,000, this translates into sales of 1025 homes per day. Therefore, there were several hundred homes in inventory and available for any given individual home sale. More inventory does NOT translate in to more sales ! There is at least an EIGHT MONTH SUPPLY of new homes right now.
Your argument does not hold water.
Speaking of water, you are witnessing the UNSINKABLE AMERICAN CONSUMER- hit an iceberg a couple of years ago.
The TRAGEDY/COMEDY is the Captain is still calling for more coal in the flooded boilers.
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