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2010-11-13 Economy

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Posted by Fred 2010-11-13 00:00|| || Front Page|| [11125 views ] Top

#1 Virtually no positive news in US home prices. In most of the USA they are grossly excessive with respect to what potential homeowners are capable of paying, and the gap is increasing, not decreasing. This is a direct consequence of political pressure to keep housing prices artificially high by postponing recognition of bad debts in order to save the big banks.

Posted by Anguper Hupomosing9418 2010-11-13 02:25|| 2010-11-13 02:25|| Front Page Top

#2 In most of the USA they are grossly excessive with respect to what potential homeowners are capable of paying

"If freight trains are selling for 'a dime a dozen' you don't have ten cents, you ain't gonna be a railroader."
anon

Posted by Besoeker 2010-11-13 10:02|| 2010-11-13 10:02|| Front Page Top

#3 Sounds like Congress is about to legistlate legitimacy into the MERS mess (fraud), which should add another layer of protection from consequences of their mistakes/crimes to the big banks. Should also help keep house prices propped up to levels where they are unaffordable to most potential buyers (banks can't afford to have their collateral valued downward or they are legally insolvent.)

Posted by Glenmore 2010-11-13 10:03|| 2010-11-13 10:03|| Front Page Top

#4 > Virtually no positive news in US home prices

ARRGGH. lower house prices = higher affordability = very good news (if wages aren't falling). Don't be such a moron.

Posted by Bright Pebbles 2010-11-13 10:47|| 2010-11-13 10:47|| Front Page Top

#5 #4 - They have fallen a small amount, but house prices are still grossly out of line with household income. I'm not impressed by this 'good news.'

Posted by Anguper Hupomosing9418 2010-11-13 13:24|| 2010-11-13 13:24|| Front Page Top

#6 Sounds like Congress is about to legistlate legitimacy into the MERS mess (fraud) .... Should also help keep house prices propped up ....

MERS is more a case of paleolithic local governments being unwilling / unable to keep pace with technology in the private sector. If anything Congressional action to letitimize it will help banks rightly push defaulted squatters out, will un-employ legions of lawyers presently litigating what are essentially dead-end delaying actions which do nothing other than allow squatters to continue to squat, and increase liquidity of inventory (via streamlined foreclosures / not a term of art) in the housing sector thereby putting downward pressure on prices.

Posted by AzCat 2010-11-13 15:11|| 2010-11-13 15:11|| Front Page Top

#7 Housing prices nationwide need to fall at least 25% to be in line with what is the reasonable selling price. Until that happens, the main turbulence in the housing market is going to be people unloading more expensive houses to buyers and then buying a much cheaper house in comparison to drop their mortgage to what they can afford. At about $150,000 MEAN price, houses will start selling again.

Posted by Shieldwolf 2010-11-13 15:31|| 2010-11-13 15:31|| Front Page Top

#8 And at $120,000 MEAN price, the house market will start to rebound.

Posted by Shieldwolf 2010-11-13 15:32|| 2010-11-13 15:32|| Front Page Top

#9 about 4 years post tax wages.

Posted by Bright Pebbles 2010-11-13 15:45|| 2010-11-13 15:45|| Front Page Top

#10 Once housing prices get above 5 years after taxes mean income for an area, the housing market starts to decline. At least it did until Freddie Mac and Fannie Mae pumped all the funny money into the mortgage industry. Most major metro areas are at 6-20 times mean after tax yearly income, which means their prices need to fall even more.

Posted by Shieldwolf 2010-11-13 16:00|| 2010-11-13 16:00|| Front Page Top

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