July 4 (Bloomberg) -- Prices for U.S. homes may climb as soon as the third quarter, ending declines as foreclosures decline make more home available for sale, Housing and Urban Development Secretary Shaun Donovan said. “It’s very unlikely that we will see a significant further decline,” Donovan said yesterday on CNN. “The real question is when will we start to see sustainable increases. Some think... [more]
July 4 (Bloomberg) -- Prices for U.S. homes may climb as soon as the third quarter, ending declines as foreclosures decline make more home available for sale, Housing and Urban Development Secretary Shaun Donovan said.
“It’s very unlikely that we will see a significant further decline,” Donovan said yesterday on CNN. “The real question is when will we start to see sustainable increases. Some think it will be as early as the end of this summer or this fall.”
“In the long run, it’s a good time to buy,” Donovan said. “It’s so affordable today compared to where it’s been for generations.”
http://washpost.bloomberg.com/Story?docId=1376-LNRENX0D9L3501-2PIO5GAGUQVSONH3VI1OEDHJ9P[less]
Response by Sunday
about 15 years ago
Posts: 1607
Member since: Sep 2009
Bullish news/comments --> Reasons to buy
Bearish news/comments --> Manhattan is different
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Response by Riversider
about 15 years ago
Posts: 13573
Member since: Apr 2009
Two big reasons to buy in Manhattan if you are long term.
1) Money is cheap now
2) Cost of new construction will only continue to increase providing a floor on pricing
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Response by help77
about 15 years ago
Posts: 46
Member since: Oct 2010
whatever River...that's like what bernanke said in May2007:
"All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system," Bernanke said.
http://www.federalreserve.gov/newsevents/speech/bernanke20070517a.htm
bottom line predictive comments from parties with vested interests cannot be trusted -- particularly when the system they're trying to predict is as complex as this one. this guy at HUD says weve found an equilibrium. OK, fair enough. BUt how about if it's just a local equilibrium and there is another one further down that we slide to? all he's doing is taking empirical data and guessing we go up, simply because there's been some stability at these levels.
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Response by mcbrawn1
about 15 years ago
Posts: 8
Member since: Mar 2010
Donovan was a failure at NYC's HPD. As a metric, I would use the large number of "affordable" developments that can't be sold because area median income is too low, and competing private developments are actually at lower price points. Why would you listen to anything this guy has to say?
If the (local) economy continues its anemic growth, this is a long term drag on prices. Taxes will rise, water bills will rise, services will decrease. These are not good for RE values. Have you ever looked at the estimates for future obligations (bond and pensions) of NYC. It won't be pretty.
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Response by help77
about 15 years ago
Posts: 46
Member since: Oct 2010
dude, let's face it, the most important thing holding this thing together is that humans are wired not to look too far into the future. at any rate, i dont care to be a downer, just saying that there is only one way to buy in Manhattan at this point, given what we know about where we came from and where we're likely going: BID DOWN. not making a statement about stocks or other assets -- clearly those are the only thing policymakers have proven they can control longer than you can remain solvent not participating in, or gasp, betting against. they're thrown the kitchen sink at housing and all they can muster after so much effort is some semblance of stability. at what cost though? remember there are few things more deflationary IN THE LONGER RUN than ever increasing energy and food costs. the crazy thing is that because the world is so connected that the longer run has quickly become the intermediate term.
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Response by NYCMatt
about 15 years ago
Posts: 7523
Member since: May 2009
Cut your losses and sell or be stuck forever!
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Response by BLOOMSDAY
about 15 years ago
Posts: 128
Member since: Apr 2010
Donovan made it to D.C. before he was taken out in handcuffs like previous HPD heads. He's the reason why the Mitchell-Lamas all went market. Always in the back pocket of the large RE concerns.
Bullish news/comments --> Reasons to buy
Bearish news/comments --> Manhattan is different
Two big reasons to buy in Manhattan if you are long term.
1) Money is cheap now
2) Cost of new construction will only continue to increase providing a floor on pricing
whatever River...that's like what bernanke said in May2007:
"All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system," Bernanke said.
http://www.federalreserve.gov/newsevents/speech/bernanke20070517a.htm
bottom line predictive comments from parties with vested interests cannot be trusted -- particularly when the system they're trying to predict is as complex as this one. this guy at HUD says weve found an equilibrium. OK, fair enough. BUt how about if it's just a local equilibrium and there is another one further down that we slide to? all he's doing is taking empirical data and guessing we go up, simply because there's been some stability at these levels.
Donovan was a failure at NYC's HPD. As a metric, I would use the large number of "affordable" developments that can't be sold because area median income is too low, and competing private developments are actually at lower price points. Why would you listen to anything this guy has to say?
If the (local) economy continues its anemic growth, this is a long term drag on prices. Taxes will rise, water bills will rise, services will decrease. These are not good for RE values. Have you ever looked at the estimates for future obligations (bond and pensions) of NYC. It won't be pretty.
dude, let's face it, the most important thing holding this thing together is that humans are wired not to look too far into the future. at any rate, i dont care to be a downer, just saying that there is only one way to buy in Manhattan at this point, given what we know about where we came from and where we're likely going: BID DOWN. not making a statement about stocks or other assets -- clearly those are the only thing policymakers have proven they can control longer than you can remain solvent not participating in, or gasp, betting against. they're thrown the kitchen sink at housing and all they can muster after so much effort is some semblance of stability. at what cost though? remember there are few things more deflationary IN THE LONGER RUN than ever increasing energy and food costs. the crazy thing is that because the world is so connected that the longer run has quickly become the intermediate term.
Cut your losses and sell or be stuck forever!
Donovan made it to D.C. before he was taken out in handcuffs like previous HPD heads. He's the reason why the Mitchell-Lamas all went market. Always in the back pocket of the large RE concerns.