The problem is the story that the numbers tell; the current purchase numbers are strongly driven by foreclosure sales (45%) and with the significant price drop in average home price(15% YoY), it's clear that it's a case of buyers trying to call the bottom and catch the proverbial falling knife. Much like the equity guys who got excited by every mini rally in the DJIA over the past year, this is far from even being close to showing signs of life. Sphere: Related Content
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Housing is a total joke. My parents live in a very high suburb in Chicago. Everything a million and up. Its like a bomb went off. Their house has been on the market for two years. Nothing moves
Do the banks have any idea about what is happening to their "legacy assets" while left unoccupied?
Lets just say they are falling into various states of disrepair.
Most homes that I visit have all of the copper wires and copper plumbing stripped out of them. Cabinets, appliances, and fixtures are stolen. Windows are broken, mold and bugs take up residency. Municiple code enforcement officers are writing violations by the 1000's.
"Legacy assets", come on. These are toxic assets to almost everyone but the bugs that live in them.
Lets get to the root of the Financial Crisis.
Maybe the reason why we had fewer financial crises in past is that we didn’t have co-ed trading floors. Women in the workplace has to END!
http://paul.kedrosky.com/archives/2009/03/the_case_for_si.html
There is a solution to the housing crisis:
It is called Section 8.
You're right, it's all in the actual numbers. Our two cents went out today at:
http://www.viewfromsiliconvalley.com/id490.html
Tyler, I think distinction needs to be made on housing activity and price. While I agree that existing home price bottom is nowhere close, those seeing a glimmer are looking for new home activity to help GDP.
Dude, prices didn't drop 15% in a month. They actually went up. The 15.5% drop you are quoting is a YOY number.
The data is in this link:
http://www.realtor.org/research/research/ehsdata
Yea good one Alex, dude.
Like I'm going to believe one shread of evidence form the NAR. Ha! Good one, dude. The gigs up on real estate "investments". I'd rather buy snake oil.
Noted - thanks Alex. My original source was a little poorly worded...
Does it matter whether or not inventory may be decreasing? I realize houses are selling at bargain basement prices. But people are out to buy, no? Even if they get 2 for 1, they're snatching them up. Who ever is foreclosing now can write off the loans, and have a less shady balance sheet.
Isn't that a good thing?
i'm in a house right now, and i like it. is something wrong?
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