September 29, 2007

Recent Housing Markets: How Bad Is It

Following is a compilation of some views and statson the housing markets from credible sources:

CBS Marketwatch: Glut of unsold homes rises to 18-year high. Home prices falling at fastest pace in 16 years, Case-Shiller says. The Case Shiller monthly survey of 20 Metro Markets shows us that the declines are still with us. Shiller is a professor of Economics at Yale University.

Atlanta Federal Reserve Board: "Dennis Lockhart, president of the Atlanta Federal Reserve Bank, said "I believe the bottom of the housing downturn could be a ways off -- potentially the second half of 2008 or later,"

US Dept of Commerce: Sales of new one-family houses in August 2007 were at a seasonally adjusted annual rate of 795,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 8.3 percent (±12.4%)* below the revised July rate of 867,000 and is 21.2 percent (±9.0%)below the August 2006 estimate of 1,009,000.

Finally, I think I caught a little light in all of this gloom. CBS Marketwatch Also quoted Lawrence Yun, senior economist for the real estate trade group, as saying he credit-market freeze in August no doubt contributed to the decline in sales ". Many loans that had been committed to fell through, Yun said, so the sales couldn't close. Existing-home sales are measured at closing.
An informal survey of real estate brokers showed about 10% of jumbo loans were failing to close, Yun said. The increase in inventories was driven mostly by lower sales, not by more supply hitting the market.
The emphasis is mine..... I wouldn't make the case we are seeing a bottom but it is always good to know that some of the recent worst was due to the credit problem, no longer with us

Thanks for Reading

Howard Bell

Your Property Path

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