Wednesday, January 12, 2011

CNBC: Housing prices still falling





CNBC reported:
"Things were bad but the broader economy never reached Depression territory. The housing market, on the other hand, just crossed that threshold.
Home values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported.
November marked the 53rd consecutive month (4 ½ years) that home values have fallen.
What’s worse, it’s not over yet: Home values are expected to continue to slide as inventories pile up, and likely won't recover until the job market improves." Article

No surprise to anyone who watched this video by yes, I'm going to say his name, Glen Beck a couple of years ago (I'm fairly expert enough on this subject matter that I can say he is right in this case. Beck gives a pretty good explanation.):



Everyone got it? Until housing prices return to their historical ratio to household income, housing prices are going to continue to fall. All Bernanke did with his quantitative easing and buying of one trillion dollars of mortgage-backed securities was prop up the housing market by keeping interest rates artificially low. That can only work for a time as rates are now rising and housing prices continue to fall. The housing market will continue to suffer until housing prices reach their natural equilibrium with income. Keep in mind there is a huge inventory of foreclosed homes waiting to hit the market as well.

Posted by Kingfish at 9:12 AM

4 comments:

Anonymous said...

Housing prices are falling? I'll bet you won't see any adjustment downward in our property taxes.

January 12, 2011 at 9:37 AM
Kingfish said...

For some of the brokers it is doing well because well, there are fewer of them. Its not just being upside down that is hurting the market but the underwriting requirements are much tougher. The self-employed really took a pounding under the new guidelines.

January 12, 2011 at 11:27 AM
Anonymous said...

Oh....I forgot you were a Mortgage Broker (or former mortgage broker)and I guess that is why I have not seen my post yet as you may have deleted it. Wow....You don't blame the Mortgage meltdown on greedy borkers? Surely not....more stricter underwriting as brokers were lending money to ham sandwiches........

January 12, 2011 at 12:26 PM
Kingfish said...

Never was a mortgage broker. Sorry. try again. and never deleted your comment either as it never appeared. Learn how to click on submit properly.

The brokers only did what the lenders allowed. The lenders set the guidelines and were responsible for verifying everything. It was the investors that told the lenders more more more and come up with more crazy stuff. Was f'n crazy. 660 credit score, 95% LTV, no job, no assets, no income. I kid you not.

January 12, 2011 at 12:59 PM

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If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

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