The financial crisis and Great Recession have their roots in the housing bust. When it comes, a lasting recovery will be evident in a housing rebound. Unfortunately, housing appears to be weakening anew.
Figures released last week show that after four months of gains, home prices flattened in October. At that time, low mortgage rates (courtesy of the Federal Reserve) and a home buyer’s tax credit (courtesy of Congress) were fueling sales. That should have propped up prices. But it was not enough to overcome the drag created by a glut of 3.2 million new and existing unsold single-family homes — about a seven-month supply.
The situation, we fear, will only get worse in months to come. Rates already are starting to rise as lenders brace for the Fed to curtail support for mortgage lending as early as the end of March. The home buyer’s tax credit is scheduled to expire at the end of April. And a new flood of foreclosed homes is ready to hit the market.
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Pensioners burn books for warmth
Ruth Davison, of the National Housing Federation, said: ‘The spiralling cost of energy means heating homes has become a luxury rather than a necessity for many people – particularly the elderly, low paid and unemployed.’
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Realturds.
ReplyDeleteShoot 'em all.
Housing is still way too expensive. Renting a home is much less expensive than "owning" a home. In reality, if you borrow money you don't "own a home". Rather you own a liability and still ahve to pay rent in the form of interest to the bank.
ReplyDeleteBefore anyone wants to buy a home, do a cost analysis between owning a home and renting one. Google "New York times rent vs. buy calculator" or other such comparison calculators. Also, go to www.mortgagemavin.com and click on the section titled "lifetime total mortgage cost" and you will see what a mortgage's total cost (the principal plus the toal accumulated interest) really is.
It's time America burnt their monopoly money for warmy.
ReplyDeleteIt's simple, real estate like gold, coal, oil ect. are commodities and is investor driven. That's all there is to that circus.
ReplyDeleteThe price of anything is what the biggest fool will or can pay for it
PERIOT!!
You live in America so take advantage of it!!
Yeah 3:57. We'll take advantage of the continued unemployment, credit cards scams and historic bailouts. Oh, dont forget the QE from the Fed. You must not have any money to lose to talk such foolish nonsense.
ReplyDelete@ 3:29 you may be right, Rent is less expensive than interest but the diffrence is that with a loan you will own the property at the end of the loan and if you rent to don't own any asset till you die.
ReplyDelete6:02 you NEVER own your property..EVER. You rent it from the government as your taxes escalate OR eminent domain occurs
ReplyDeleteThe solution to this problem is very simple, REMOVE ALL SUPPORT to real estate and let free market forces decide the right price for property.
ReplyDeleteHow long will it take for Americans to understand that they lived beyond their means and its not sustainable. Let free market decide what is the affordable price of properties for all Americans to benefit. The home buyer’s tax credit is there to protect the interest of Greedy Americans who has put us into this shit.
By letting free market forces work, property prices will fall by a further 25% or even more and this is the right way to go if we want a sustainable recovery. Government grants and stimulus will only artificially pump the market which is not sustainable as wages will not grow fast enough for property to be affordable for all. The administration will keep extending the Tax credit and increase debt till its too late as in the end free market forces always win.
The dawn of a new day has begun. A new world of communism.
ReplyDeleteWe can only hope. Because military dictatorship is not very appealing, nor is National Socialism (almost the same thing).
ReplyDeleteIn natural communism there are far more "property rights" than in government rented housing, also known as property ownership.
ReplyDeleteHUH? My TV told me the recession is over and unemployment is going up. The US economy is expanding and the Cowboys won.
ReplyDeleteLet's focus on more important problems like stopping them terrorist from underwear bombing our airlines or finishing the war in Afghanistan, where al qeda is terrorizing our troops.
These minor financial matters will take care of themselves, with the help of the government.
GO COWBOYS!
(sic)