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recession: RECALCULATING: How the Economy Mimics a GPS - 12/27/11 08:13 PM
Recalculating—most of us have heard that phrase as a GPS sought to discover a new route, and most of us have felt similarly perplexed as we tried to make sense of the maze that is our present economy. “Economists” tell us that the great recession ended a couple of years ago, but a quick look around tells a different tale. We only have to look to the (real) unemployment rate, declines in incomes, trillions of real estate equity lost, millions of foreclosures, new home sales at record lows and half of American households receiving some type of government benefits, with more … (8 comments)

recession: New Data Indicates Further Declines in Home-Ownership Rate - 01/31/11 08:26 PM
 
Recent data from the Census Bureau reported a significant drop in the rate of home ownership, falling from its peak of 69.2% to 66.9% in the 4th quarter of 2010; and some experts have predicted that ownership rates could fall as low as 62%.  
 
While continued high unemployment and an uncertain economy continue to have a significant negative impact upon the housing market, new regulations being proposed for the restructuring of the mortgage market are also likely to further weaken home sales.  Tightening of mortgage requirements, combined with calls for higher down-payments, while seen as long-term stabilizing factors, … (33 comments)

recession: How the Recession is Changing our Lives - 01/28/11 09:01 AM
 
The Atlantic has an interesting article on the effects of the recession and how it is changing our lives, our businesses and our nation. 
 
Here are a few of the more striking changes we’ve seen in the past three years:
 
● In 2007 federal agencies held $725 billion in mortgage debt; today they hold $5.14 trillion.
● The median price of an existing home in 2007 was $206,700; today it is $170,500.
● Since 2007, 24% of 18 to 29 year olds have moved back in with parents.
● In 2007 only 1 state faced a budget … (16 comments)

recession: Creating Success During the Great Correction - 01/22/11 06:10 PM
 
Creating Success During the Great Correction 
 
Although the recession has been declared officially over, most realize that the commonly used criteria for determining the end of this recession are severely flawed, and have little impact upon the attitudes of consumers and potential homebuyers.  While the recession may have ended, we’ve now entered The Great Correction, a process that began 4 years ago.  With millions of unemployed, millions more facing foreclosure, and with little prospect of a quick turn-around, what can those in real estate related businesses do to avoid adding to the malaise?  And more importantly, what can … (35 comments)

recession: NAHB: Single Family Housing Starts Will Increase 21% in 2011 - 01/12/11 09:00 PM
 
According to the chief economist for the National Association of Home Builders, NAHB, Single family housing starts will increase 21% in 2011.   And while such an increase seems dramatic, it’s far less than needed to begin rebuilding either the residential construction industry or the jobs that should accompany new construction.  Of course any improvement would be welcome, but last year’s output of only 474,000 homes was less than half of that of a moderate year and only about one-quarter of that of the boom years.
 
And it’s likely that the NAHB is being overly optimistic as the predictions of … (6 comments)

recession: November Home Prices Are Down 5% Year-Over-Year - 01/11/11 08:57 PM
 
CoreLogic, a real estate data and analytics company, has recently issued a report indicating that November home prices are down 5% year-over-year, and prices appear to be continuing their fall.  And although price declines this time of year are normal, the news isn’t good for a housing market unable to find stabilization.
 
Some of the highlights from the report are:
 
Excluding distressed sales, the five states with the greatest depreciation were: Idaho (-10.42%), Alabama (-7.82%), Arizona (-7.81%), Nevada (-6.13%) and Washington (-6.05%).
 
Excluding distressed sales, the five states with the highest appreciation were: Wyoming (+6.47%), North Dakota … (7 comments)

recession: Jobs Growth and a Housing Market Recovery Are Still Years Away - 01/08/11 05:19 PM
Federal Reserve Chairman Ben Bernanke, speaking before the Senate Budget Committee, stated that “. . . it could take four to five more years for the job market to normalize fully.”  Despite reports of unemployment falling by more than 500,000 to 9.4% in the most recent data from the Labor Department, the jobless rate continues to plague the housing recovery.  And a little digging into the numbers shows that about 400,000 job seekers simply gave up their search.
 
And while the lower unemployment rate created a temporary media buzz, the underlying data gives cause for concern.  With 103,000 nonfarm payroll … (12 comments)

recession: Do We Really Need 4 TVs? - 01/07/11 09:02 PM
 
As we enter another year of the recession that won’t go away, some have begun to reconsider the way they’ve spent money during the past decade and are questioning: Do we really need 4 TVs?  With the jobs situation having experienced a “structural” change that will alter consumer spending for decades, the reality of a vastly different economy is staring us in the face.  Businesses are trimming costs, and it’s having a ripple effect.    
 
As jobs are lost and less “real” money is in circulation, everyone is affected.  Many who once earned six or seven figures are now … (12 comments)

recession: 2011 May Be the Year of the Short Sale - 01/06/11 05:22 PM
 
With new rules from Treasury and pressure from investors, 2011 may be the year of the short sale.  And while the Home Affordable Foreclosure Alternative, HAFA, was intended to speed up the short sale process, real estate agents and sellers know the program has been anything but speedy. 
 
With millions of homeowners in serious default, many had expected to see short sales increase dramatically in 2010 as HAFA encouraged lenders to increase the pace, but the program lacked sufficient incentives for servicers and ended the year with less than 700 approvals.  However, a report on CNBC describes how … (9 comments)

recession: A Little Good News - 01/06/11 06:55 AM
While much of the news about the housing market has been negative during the past three years, Wednesday’s ADP Employment Report had a little good news.  Most of the excitement focused on the news that private employment shocked the experts, experiencing a net gain of almost 300,000 jobs in December.   And though that’s some of the best employment news we’ve seen during the recession, it’s only the beginning of what is necessary to get the millions of unemployed back to work.
 
However, the report included additional information—and more good news—that may indicate that employment growth in the housing sector might … (10 comments)

recession: I Wish I Could Restore My Home’s Value - 12/31/10 04:20 PM
I wish the economy were better, and I wish I could restore my home’s value.  If only wishing could make it so, if only wishing could restore our economy.  If just by thinking a few happy thoughts and ignoring the realities of the most serious recession in decades, we could bring the housing market back, bring financial stability to the markets, stop the declines in employment; we could all live happily ever after.  But remaking our economy isn’t as easy as wishful or positive thinking. 
 
And while we like to point fingers at our government, to irresponsible homeowners, to … (13 comments)

recession: Home Sales Slide as Inventory Grows - 11/23/10 02:00 PM
Home Sales Slide as Inventory Grows
According to a report released by the NAR, October existing home sales fell by 2.2%, following an increase of 10% in September. Annualized sales numbers came in near expectations at a rate of 4.43 million. Year-over-year sales are down by more than 25%.
 
While economists and others try to put a positive spin on these numbers, blaming tight credit, the foreclosure moratorium or the end of the homebuyer tax credit; the reality is that the housing market has yet to stabilize or begin a recovery. Many look only at the current inventory of existing … (10 comments)

recession: Save Money--Live Well - 11/16/10 02:52 PM
Tough economic times demand that we all spend our money more "Frugally," and since I love both saving and sharing money-saving tips and ideas, I have developed--with much help from my daughter--The Frugal Guru.  In keeping with the "Guru" tradition, we'll try to provide some great tips along with the latest specials from grocery and other retailers.  
We also offer our own printable coupons with dozens of great weekly specials.  If you like saving money, check us out at: TheFrugalGuru.com
 
… (6 comments)

recession: Consumers Express Concern About Paying For Housing - 10/30/10 07:18 PM
Consumers Express Concern About Paying For Housing
In a recent Washington Post poll, consumers reported increased concern over their ability to pay for their housing. Showing an increase of 16% in just the past two years, 53% of consumers said they were “very concerned” about making their monthly housing payments. Separating the results of homeowners and renters, the poll reported almost three-quarters of renters and about half of homeowners “somewhat” or “very” concerned.
 
The results present a less than optimistic view that large numbers of renters will be making the transitions to owners in the near-term.
 
The … (8 comments)

recession: Clear Capital™: Sudden and Dramatic Drop in U.S. Home Prices - 10/22/10 09:49 PM
Clear Capital™, a real estate data firm located in California, has issued a special alert on a dramatic change in U.S. home prices. According to the release, prices are continuing to fall following the artificially induced highs of the Homebuyer Tax Credit, and have fallen 5.9% in just two months. While this is counter to what has been reported in the Case-Shiller Home Price Index, the Clear Capital™ data is more current.
 
Further declines in home prices have been predicted by a number of housing experts as the market continues to struggle with high levels of inventory, foreclosures, unemployment and … (20 comments)

recession: The Little House That Could Bring Down The Big Banks - 10/15/10 09:39 AM
A small, nondescript farmhouse in Maine may one day host a monument marking it as the spot where the first volley of Foreclosure-Gate was fired. The house, owned by Nicolle Bradbury, is just one of millions facing foreclosure, but, according to an article in the NY Times, the owner refused to go quietly and sought help from a local nonprofit group offering legal assistance to foreclosure victims.
 
The article provides additional insights into what may become the biggest story of this recession, a “political football” that most don’t yet know how to grasp; and a crisis so complex, it has … (14 comments)

recession: The Foreclosure Scandal Has Become Pandemic - 10/09/10 10:34 AM
As more mortgage companies “fess-up” regarding their apparent fraudulent processing of foreclosure documents, the foreclosure scandal has become pandemic.  And while the early response from many, including myself, was that this issue would soon be swept under the rug, with no benefit for struggling homeowners, and allowing banks to proceed with foreclosures, the problem has exploded in significance.
 
Attorneys and state courts around the country have begun to question the manner in which banks have processed thousands of foreclosures each month, and numerous errors have been discovered.  Court documents have revealed the casual manner in which foreclosures were often allowed … (104 comments)

recession: House Bill Offers Help to 30 Million Homeowners - 09/28/10 04:57 PM
A bill introduced in the House of Representatives would offer refinancing to as many as 30 million homeowners whose mortgages are held or backed by Fannie Mae or Freddie Mac. In an article today on HousingWire, the plan as described would allow qualifying borrowers to refinance with almost no regard for income, credit history or LTV.
 
The program if passed would provide relief to those homeowners struggling to remain in their homes but hampered by high monthly payments. Offering loans at today’s incredibly low interest rates, the bill only addresses those loans already backed by the GSEs, and could possibly … (9 comments)

recession: New Home Sales Flat And Prices Down - 09/24/10 10:56 AM
An article on Bloomberg reports that sales of new home in August came in below expectations and matching the second lowest level on record. Sales remained flat, equaling July’s number of 288,000 and appear to have been unaffected by continued low mortgage rates.
 
Competition from foreclosures and short sales added to home builder’s problems, pulling median prices down to a six-year low. With continued high unemployment, tighter lending restrictions, and the general gloom felt by consumers, little change is expected in the near-term.
 
The Housing Guru: The expert source for all your housing questions
 
 
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recession: Existing Home Sales Up 7.6% - 09/23/10 10:25 AM
In a report released this morning from the National Association of Realtors®, existing home sales increased 7.6% for the month of August. Following last month's dismal report that fell well below expectations, the August report is slightly above the anticipated number of 7%. But with July existing home sales at an almost 15 year low, the August numbers are still the second worst in a decade and well below those of August 2009, showing a market continuing to struggle.
 
The Housing Guru: The expert source for all your housing questions
 
… (12 comments)

 

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