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A couple days ago, I posted Understanding the Housing Correction in an effort to explain my opinion that most people don’t necessarily understand the housing bubble and that housing has entered a long term bear market . This isn’t meant as an insult but rather to show just how conditioned we are/were [...]
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When we look at the housing bubble and resulting correction, it’s understandable why so many people want to see a turnaround in prices. Most of the time, they want to believe the best case scenario; that is the human nature in all of us. But a lot of the time human nature [...]
ShareEver wish you had a quick back of the envelop method to value a house and tell whether is was priced right? Well, I’ll give you one that is really easy. A realtor who is trying to sell me a condo sent me an email regarding the following great deal:
“The unit is right on [...]
ShareThere will be no fundamental recovery (overall) in the economy until housing recovers. Foreclosures, as bad as they seem, are part of the cleansing process and will not be prevented by government intervention. Remember the A B C’s of the economy…as goes housing, so goes the economy….
Banks Take Losses on Short Sales as Foreclosures Soar [...]
ShareAs expected, the commercial property market is unwinding. This directly affects the residential housing market. How so? As the banks try to remain solvent, commercial defaults will lead to further toxic assets on the balance sheets of lenders/banks. This in turn will limit the amount of credit available in the aggregate. The problem is structural [...]
ShareUnderwater Mortgages, The Next Bubble
25% of home owners are underwater, meaning that the price of their mortgage is higher than the current market value of their houses. With the tightening of long-term money (30-year loans) this number will rise. To what level? I don’t know. But understand the trajectory and the trend so that you [...]
ShareReal Estate Forecast
When trying to understand the economic environment in which we live, most of us tend to think in the very short term. This is understandable because we need to take care of today by paying our bills, taking care of our families and making a living.
However, when trying to understand how to structure [...]
ShareThe Housing Market has not bottomed and there is really no sense of talking “bottom” until 2012. Although there are good deals to be had, always remember that current events (as in vacancies) form future trends in price (as vacancies rise so do defaults) Any short term blip in the home market is just [...]
ShareAny real recovery in the global economy begins with the housing market in the US getting back on track. As the article states, foreclosures aren’t abating even as demand is coming back. Do you remember the ABC’s of Global Macro Economics?
A) As goes the housing market, so goes the U.S. economy
B) As goes the U.S. [...]
Foreclosures for 2010, A Leading Economic Indicator
ShareWith foreclosures expected to reach record levels this year, we can expect a drag and eventual lag on the economy for 2010. The government intervention is not going to slow this process from happening. This is a cleansing process and needs to take place.
U.S. Foreclosures to Reach Record 3.9 Million in 2009 (Update1)
By Dan Levy
Dec. [...]
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