"New Report Warns Of "Unprecedented Decline" In Home Values And No Stabilization In Q3" Zillow just released a devastating third quarter housing report. Basically every major indicator is crashing: * The decline in home values accelerated in September, dropping 0.4% month-over-month * Foreclosures reached an all-time high * A record 23.2% of mortgages are now underwater The double dip -- already a... [more]
"New Report Warns Of "Unprecedented Decline" In Home Values And No Stabilization In Q3"
Zillow just released a devastating third quarter housing report. Basically every major indicator is crashing:
* The decline in home values accelerated in September, dropping 0.4% month-over-month
* Foreclosures reached an all-time high
* A record 23.2% of mortgages are now underwater
The double dip -- already a rare phenomenon -- is now entering an unprecedented free-fall.
"The length and depth of the current housing recession is rivaling the Great Depression’s real estate downturn, and, with encouraging signs fading, will easily eclipse it in the coming months."
http://www.businessinsider.com/zillow-market-report-unprecedented-decline-2010-11
Read more: http://www.businessinsider.com/zillow-market-report-unprecedented-decline-2010-11#ixzz14tTZWeYc[less]
Response by stevejhx
almost 16 years ago
Posts: 12656
Member since: Feb 2008
Real estate never falls in value, and zillow don't know what they're talking about. JuiceMan is the authority for all things real estate.
Silly wabbit.
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Response by ericho75
almost 16 years ago
Posts: 1743
Member since: Feb 2009
If you folks don't believe in Zillow when prices were flying, why do you believe them when they are predicting the end of the world decline?
Typical Bear crap.
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Response by alanhart
almost 16 years ago
Posts: 12397
Member since: Feb 2007
Eric, you're confusing Zillow's ridiculous "Zestimates" for individual properties with their solid trend analysis and forecasting.
So let's review: 23.2%, 23.2%, 23.2%
And remind me how many more housing units there are than households.
and according to steve, the study streeteasy just completed is wrong because it didn't give him the answer he wanted.
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Response by bob_d
almost 16 years ago
Posts: 264
Member since: May 2010
Ben Bernanke is creating massive inflation to prevent house prices from falling.
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Response by beatyerputz
almost 16 years ago
Posts: 330
Member since: Aug 2008
Ben Bernanke is only creating commodity inflation. That hurts corporate earnings and individual pocketbooks. If you think that's good for real estate, then you must be ericho - I mean, an idiot.
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Response by Dwayne_Pipe
almost 16 years ago
Posts: 510
Member since: Jan 2009
"Typical Bear crap"
LOL. If you haven't noticed, everything the bears said would happen, has happened. From 2006 on, in most markets, although NYC's decline started a couple of years later. But we're still down 15-20%.
So the comment "Typical Bear crap" would be like Pelosi saying "typical anti-healthcare act crap"...
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Response by notadmin
almost 16 years ago
Posts: 3835
Member since: Jul 2008
> Ben Bernanke is creating massive inflation to prevent house prices from falling.
lol, the idiot called Ben Bernanke should increase discretionary income of wage earners if he really wants higher house prices... but as beatyerputz correctly states, all the idiot is doing is decreasing that discretionary income by creating higher food and energy prices. funny, isn't it?
We all know that the FED cares about keeping wages under a tight grip while creating debt-fueled asset bubbles few will benefit from.
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Response by notadmin
almost 16 years ago
Posts: 3835
Member since: Jul 2008
Nice! i'm looking forward to seeing NYC in the list of cities that are falling the most, right next to Seattle, the other city that used to be so different than eh rest.
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Response by sledgehammer
almost 16 years ago
Posts: 899
Member since: Mar 2009
bob_d! If Bernanke succeed with creating massive inflation, it won't be an inflation in incomes, so it will become even harder for the middle class to consider purchasing any property has they won't be able to save for a downpayment resulting in an inevitable drop in prices. RE is a supply and demand thing, ya know?
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Response by notadmin
almost 16 years ago
Posts: 3835
Member since: Jul 2008
also massive inflation implies higher mortgage rates which will kill house prices... the guy is caught up in a circular argument. bottom line is "creating asset bubbles as a quick band-aid" is moronic. medium to long term it ends up hurting more than helping.
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Response by beatyerputz
almost 16 years ago
Posts: 330
Member since: Aug 2008
"also massive inflation implies higher mortgage rates which will kill house prices"
Good piece in the WSJ today about yields actually going up as a result of Bernanke:
Bottom line: either way, Bernanke is fucked. Either way, real estate is fucked.
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Response by sallyandbaby
almost 16 years ago
Posts: 8
Member since: Nov 2008
To add fuel to the fire - if the Obama administration's plan to significantly reduce or eliminate the tax deduction on mortgage interest, that will really send real estate values plummeting.
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Response by jason10006
almost 16 years ago
Posts: 5257
Member since: Jan 2009
Its not OBAMA's plan, idiot.
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Response by chris13
almost 16 years ago
Posts: 174
Member since: Aug 2009
New York needs to increase property taxs on City apartment. Taxs are way to low. There is not any other place in the country that someone can pay 650 a month in taxs on a 1.7 mill apartment. I pay more taxs on property out side the city. beside most that own these units are very wealthy so they need to suck it up and pay. Most In New York voted for income redistribution (Obamas plan) so they should pay for there political views. (Left)
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Response by somewhereelse
almost 16 years ago
Posts: 7435
Member since: Oct 2009
"If you folks don't believe in Zillow when prices were flying, why do you believe them when they are predicting the end of the world decline?"
Actually, I did. I posted a bunch of stuff from zillow back in the day.
"Typical Bear crap"
Accuracy? Yes, typical
Typical bull denial!
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Response by somewhereelse
almost 16 years ago
Posts: 7435
Member since: Oct 2009
> "Typical Bear crap"
> LOL. If you haven't noticed, everything the bears said would happen, has happened. From 2006 on, in most markets,
> although NYC's decline started a couple of years later. But we're still down 15-20%.
> So the comment "Typical Bear crap" would be like Pelosi saying "typical anti-healthcare act crap"...
Typical sun will rise crap!
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Response by bob_d
almost 16 years ago
Posts: 264
Member since: May 2010
People don't want to sell their houses for less than they paid for them, because people are irrational that way. This is why we see such a big unsold inventory of houses, and probably even more houses that people won't bother to list because they know they won't get the price they want.
But by devaluing the dollar enough, this will have the effect of lowering the real price of houses without lowering the nominal price, then people can sell their houses under the illusion that they didn't lose anything.
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Response by w67thstreet
almost 16 years ago
Posts: 9003
Member since: Dec 2008
Bobby don't disagree but the short/bk sales continues unabated. At some point when consumers clench their asses in unison bc oil hits $100pbl again, watch out below stagflation! Moving bubbles around!
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Response by bob_d
almost 16 years ago
Posts: 264
Member since: May 2010
The impact of oil prices on the economy is vastly overstated. People spend far more money on housing than they do on petroleum derivatives. For example, if you drive 10,000/mi per year and your car gets 20 mpg, then a $1 increase in the price of gasoline is only $500/year.
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Response by bob_d
almost 16 years ago
Posts: 264
Member since: May 2010
Furthermore, high oil prices will put people to work drilling oil wells, so it will bring down unemployment.
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Response by w67thstreet
almost 16 years ago
Posts: 9003
Member since: Dec 2008
And yet our depression started when overleveraged Cali homeowners couldn't handle the $5gallon gas on their hummers for a summer. Omfg.
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Response by malthus
almost 16 years ago
Posts: 1333
Member since: Feb 2009
Lucky thing for us that oil is only used in passenger cars and not in airplanes, trucks, shipping, plastics and sundry other areas that impact our economy. Nothing to see here.
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Response by falcogold1
almost 16 years ago
Posts: 4159
Member since: Sep 2008
The impact of oil prices on the economy is vastly overstated
I don't know about that bob...the cost of energy has an enormous effect on our economy.
high oil prices will put people to work drilling oil wells, so it will bring down unemployment.
True but an amount, that by itself, would do little to alter the enployment stats.
Like the guys that tell you, don't worry what it costs...what's the monthly nut? (fool's logic)
Real estate never falls in value, and zillow don't know what they're talking about. JuiceMan is the authority for all things real estate.
Silly wabbit.
If you folks don't believe in Zillow when prices were flying, why do you believe them when they are predicting the end of the world decline?
Typical Bear crap.
Eric, you're confusing Zillow's ridiculous "Zestimates" for individual properties with their solid trend analysis and forecasting.
So let's review: 23.2%, 23.2%, 23.2%
And remind me how many more housing units there are than households.
steve takes the bait.........again
http://streeteasy.com/nyc/talk/discussion/13206-discuss-trulia-says-manhattan-down-447-avg-price-psf
and according to steve, the study streeteasy just completed is wrong because it didn't give him the answer he wanted.
Ben Bernanke is creating massive inflation to prevent house prices from falling.
Ben Bernanke is only creating commodity inflation. That hurts corporate earnings and individual pocketbooks. If you think that's good for real estate, then you must be ericho - I mean, an idiot.
"Typical Bear crap"
LOL. If you haven't noticed, everything the bears said would happen, has happened. From 2006 on, in most markets, although NYC's decline started a couple of years later. But we're still down 15-20%.
So the comment "Typical Bear crap" would be like Pelosi saying "typical anti-healthcare act crap"...
> Ben Bernanke is creating massive inflation to prevent house prices from falling.
lol, the idiot called Ben Bernanke should increase discretionary income of wage earners if he really wants higher house prices... but as beatyerputz correctly states, all the idiot is doing is decreasing that discretionary income by creating higher food and energy prices. funny, isn't it?
We all know that the FED cares about keeping wages under a tight grip while creating debt-fueled asset bubbles few will benefit from.
Nice! i'm looking forward to seeing NYC in the list of cities that are falling the most, right next to Seattle, the other city that used to be so different than eh rest.
bob_d! If Bernanke succeed with creating massive inflation, it won't be an inflation in incomes, so it will become even harder for the middle class to consider purchasing any property has they won't be able to save for a downpayment resulting in an inevitable drop in prices. RE is a supply and demand thing, ya know?
also massive inflation implies higher mortgage rates which will kill house prices... the guy is caught up in a circular argument. bottom line is "creating asset bubbles as a quick band-aid" is moronic. medium to long term it ends up hurting more than helping.
"also massive inflation implies higher mortgage rates which will kill house prices"
Good piece in the WSJ today about yields actually going up as a result of Bernanke:
http://online.wsj.com/article/SB10001424052748703805004575606262000387820.html?KEYWORDS=bernanke
Bottom line: either way, Bernanke is fucked. Either way, real estate is fucked.
To add fuel to the fire - if the Obama administration's plan to significantly reduce or eliminate the tax deduction on mortgage interest, that will really send real estate values plummeting.
Its not OBAMA's plan, idiot.
New York needs to increase property taxs on City apartment. Taxs are way to low. There is not any other place in the country that someone can pay 650 a month in taxs on a 1.7 mill apartment. I pay more taxs on property out side the city. beside most that own these units are very wealthy so they need to suck it up and pay. Most In New York voted for income redistribution (Obamas plan) so they should pay for there political views. (Left)
"If you folks don't believe in Zillow when prices were flying, why do you believe them when they are predicting the end of the world decline?"
Actually, I did. I posted a bunch of stuff from zillow back in the day.
"Typical Bear crap"
Accuracy? Yes, typical
Typical bull denial!
> "Typical Bear crap"
> LOL. If you haven't noticed, everything the bears said would happen, has happened. From 2006 on, in most markets,
> although NYC's decline started a couple of years later. But we're still down 15-20%.
> So the comment "Typical Bear crap" would be like Pelosi saying "typical anti-healthcare act crap"...
Typical sun will rise crap!
People don't want to sell their houses for less than they paid for them, because people are irrational that way. This is why we see such a big unsold inventory of houses, and probably even more houses that people won't bother to list because they know they won't get the price they want.
But by devaluing the dollar enough, this will have the effect of lowering the real price of houses without lowering the nominal price, then people can sell their houses under the illusion that they didn't lose anything.
Bobby don't disagree but the short/bk sales continues unabated. At some point when consumers clench their asses in unison bc oil hits $100pbl again, watch out below stagflation! Moving bubbles around!
The impact of oil prices on the economy is vastly overstated. People spend far more money on housing than they do on petroleum derivatives. For example, if you drive 10,000/mi per year and your car gets 20 mpg, then a $1 increase in the price of gasoline is only $500/year.
Furthermore, high oil prices will put people to work drilling oil wells, so it will bring down unemployment.
And yet our depression started when overleveraged Cali homeowners couldn't handle the $5gallon gas on their hummers for a summer. Omfg.
Lucky thing for us that oil is only used in passenger cars and not in airplanes, trucks, shipping, plastics and sundry other areas that impact our economy. Nothing to see here.
The impact of oil prices on the economy is vastly overstated
I don't know about that bob...the cost of energy has an enormous effect on our economy.
high oil prices will put people to work drilling oil wells, so it will bring down unemployment.
True but an amount, that by itself, would do little to alter the enployment stats.
Like the guys that tell you, don't worry what it costs...what's the monthly nut? (fool's logic)
fertilizer & farm machinery
fertilizer
this, we got plenty!