With more inventory in foreclosure pipeline nationwide, three-year home price slide expected
http://therealdeal.com/newyork/articles/32513/elert?utm_campaign=rnewsletter&utm_content=The+Real+Deal+News+-+Residential+Real+Estate&utm_medium=email&utm_source=MadMimi&utm_term=_0D_0AWith+more+inventory+in+foreclosure+pipeline+nationwide_2C+three-year+home+price+slide+expected_0D_0A
As more homes nationwide work their way through the foreclosure pipeline, economists are growing concerned that a growing shadow inventory -- homes that are in distress and face a foreclosure-driven sale -- could hamper progress on home prices. Estimates show that as many as 12 million more properties may soon hit the market, as the foreclosure crisis resolves, which could lead to three more years of dropping prices. Oliver Chang, a U.S. housing analyst with Morgan Stanley said that burgeoning inventory may prevent the market from reaching bottom. "Whether it's the sidelined, shadow or current inventory, the issue is there's more supply than demand," Chang said. [more]
"As more homes nationwide work their way through the foreclosure pipeline, economists are growing concerned that a growing shadow inventory -- homes that are in distress and face a foreclosure-driven sale -- could hamper progress on home prices. Estimates show that as many as 12 million more properties may soon hit the market, as the foreclosure crisis resolves, which could lead to three more years of dropping prices. Oliver Chang, a U.S. housing analyst with Morgan Stanley said that burgeoning inventory may prevent the market from reaching bottom. "Whether it's the sidelined, shadow or current inventory, the issue is there's more supply than demand," Chang said. Mark Zandi, chief economist with Moody's, said that prices will drop another 5 percent by 2013 and may not recover for a decade. [Bloomberg]"
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Banks will have a harder times hiding their shadow inventory and will have to unload it on the market!
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"...The Securities and Exchange Commission is proposing expanded disclosure requirements for banks' practice of temporarily trimming their debt at the end of quarters to make their financial statements appear stronger....
...Under the proposed rules, banks would be required to report the amount outstanding of their short-term borrowings at the end of each quarter and the average interest rate they paid on the loans. They also would have to report the average amount of borrowings outstanding during the quarter and the average interest rate, as well as the maximum amount outstanding..."
If the SEC do what they want to do below:
http://finance.yahoo.com/news/SEC-backs-new-rules-on-bank-apf-3273922459.html?x=0
Banks will have a harder times hiding their shadow inventory and will have to unload it on the market!
=================================================================
"...The Securities and Exchange Commission is proposing expanded disclosure requirements for banks' practice of temporarily trimming their debt at the end of quarters to make their financial statements appear stronger....
...Under the proposed rules, banks would be required to report the amount outstanding of their short-term borrowings at the end of each quarter and the average interest rate they paid on the loans. They also would have to report the average amount of borrowings outstanding during the quarter and the average interest rate, as well as the maximum amount outstanding..."