Case-Shiller Home Price Improvement Temporary
October 27, 2009
Home Price Improvements May Be Short-Lived | www.realestateeconomywatch.com
According to a recent Case-Shiller home price report, the pace of annual decline in home values continues to decelerate and there are sustained monthly increases across many of the markets. Historic low mortgage rates and a government tax credit program have provided a favorable backdrop for housing activity throughout this year. Housing sector faces several obstacles that could weaken future home sales and home values.
Record Deficit Bad News For Economy and Housing
October 22, 2009
Record Budget Deficit Cast a Dark Shadow Over Economy and Housing | www.realestateeconomywatch.com
The federal budge deficit is now at an all-time record and is about 10 percent of GDP. The fallout of running excessive budget deficits will likely be higher interest rates and slower and erratic long-term economic growth. Both would provide an unfavorable backdrop for the nation's housing sector.
Homebuyers Expecting Too Much out of the Recovery
October 15, 2009
Homebuyers Overly Optimistic about Future Home Values | www.realestateeconomywatch.com
The Case-Shiller home price index has increased sharply during the past several months, suggesting that homebuyers are expecting future home values to rise. A recent homebuyer survey confirms that homebuyers expect home values to significantly rise over the next 10 years and I worry that they are becoming over exuberant once again.
Some Mortgage Companies Could be in Trouble Next Year
October 14, 2009
Mortgage Lending Business Expected to Sink Next Year | www.realestateeconomywatch.com
According to the Mortgage Bankers Association's new forecast, mortgage origination volumes could plummet next year. That could be bad news for lenders that rely heavily on the refinancing side of the business.
A Convincing Case for a Homebuyer Tax Credit Extension
October 6, 2009
Extend the Homebuyer Tax Credit | www.realestateeconomywatch.com
With the expiration date rapidly approaching, supporters of the tax credit fear that the housing recovery may stumble in the absence of this housing subsidy. Opponents believe that extending the program would be costly, expressing concerns about excessive government spending and a run-away federal budget deficit. They also believe that a tax credit program does not solve the problems of the housing sector; it only postpones dealing with those problems.
Short Sales Are About to Increase
October 5, 2009
Short Sales: A Fraying Lifeline for Homeowners | www.businessweek.com
Treasury is announcing new terms that they hope will encourage more short-sales. These transactions have not been very effective in the past, and while this is probably not going to be a game changer, it’s wise to expect the incentives could spur some level of increase in short sales.
Case-Shiller Home Price Index Positive Development for Housing
September 30, 2009
Home Price Report Offers Encouraging News | www.realestateeconomywatch.com
Home values, as measured by the popular S&P Case-Shiller home price index of 20 cities rose 1.6 percent in July from a month earlier. Home prices also rose in June and May on a month over month basis. The three-month steady improvement in home values indicates that the housing markets may be stabilizing.
Mortgage Applications Drop Despite Lower Mortgage Rates
September 30, 2009
Mortgage Applications Decrease in Latest MBA Weekly Survey | www.mortgagebankers.org
The weekly mortgage application survey released by the MBA reported that both purchase and refinance application were down which was disappointing news for the housing markets given that mortgage rates fell during the week.
September 2, 2009
Hope can fuel bulls' charge as stocks rally despite worries | www.usatoday.com
We believe that the recovery will be W-shaped and that April was only a false bottom. Our estimate is that there will be a slowing beginning in December, and that we will hit the true bottom in summer of 2010.
Policy Makers, CEOs and Investors Beware
August 26, 2009
1. Mortgage Rates to Benefit from Stabilized Home Prices, Jumbo Mortgage Rates in Particular | www.examiner.com
The emergence of home price stabilization is spotty and should not be over-simplified. It’s important to look at the underlying indicators to see where stabilization is actually taking place.
Who is kidding who regarding a recovery in commercial real estate
October 18, 2009
U.S. Helps Commercial Real Real Estate Lenders Pretend and Extend
October 15, 2009
The Jury Is Still Out On General Growth
October 8, 2009
FDIC to create value "mark" by selling Corus portfolio
September 24, 2009
The Condo-Hotel Gone Bad: A Particular Corner of Hell
August 24, 2009