Housing Rolling Along 2
- Thread starter Covertibility
- Start date
U.S. home prices fell at a faster rate in the second quarter, down 3.2% compared with the same period in 2006, Standard & Poor's reported Tuesday. It marked the largest year-over-year decline ever recorded in the 20-year history of the Case-Shiller home price index. A year ago, home prices were rising at a 7.5% pace nationally. "The pullback in the U.S. residential real-estate market is showing no signs of slowing down," said Robert Shiller, chief economist at MacroMarkets LLC, which computes the price index for S&P. In an interview with MarketWatch, Shiller noted that the figures were for activity ending in June -- well before the more recent blowup in the mortgage markets.
Case-Shiller index is only for selected cities.
Even for conforming loans, the national average home re-sale price index (which is more accurate than the medium price index) decreased by 1.5% YtY in Q2 2007, the first negative increase in over 40 yrs.
Guys, I really thought we here in the UK followed you guys in the US. Your housing markets seems to be cooling, but here in the UK, we seem very strong.
Then again some say the US is 3 years ahead of the UK. So maybe in another few years we will see prices drop here.
As i understand for 2nd, 3rd time buyers to move up the ladder, they need first time buyers, but house prices for 1st time buyers are beyond reach. Big difference between income and house prices. Something has to give, its easier for prices to come down then salaries to go up.
Any thoughts?
Then again some say the US is 3 years ahead of the UK. So maybe in another few years we will see prices drop here.
As i understand for 2nd, 3rd time buyers to move up the ladder, they need first time buyers, but house prices for 1st time buyers are beyond reach. Big difference between income and house prices. Something has to give, its easier for prices to come down then salaries to go up.
Any thoughts?
Quote from gkadir:
Guys, I really thought we here in the UK followed you guys in the US. Your housing markets seems to be cooling, but here in the UK, we seem very strong.
Then again some say the US is 3 years ahead of the UK. So maybe in another few years we will see prices drop here.
As i understand for 2nd, 3rd time buyers to move up the ladder, they need first time buyers, but house prices for 1st time buyers are beyond reach. Big difference between income and house prices. Something has to give, its easier for prices to come down then salaries to go up.
Any thoughts? [/
sure, give Ditech a license to operate and watch the buyers line-up for 125% LTV mortgages.
What city are you in?
I love London. One of the greatest places on the entire planet. So much to see and do. A truly amazing city.
By the way, is healthcare in the UK free for everyone as Michael Moore in his movie Sicko says? I hope so.
Would an American be able to get free healthcare if they relocated to the UK, just like the UK citizens?
I just live outside London. Uk cost of living is amongst the highest. Are you sure you want to come to the UK and pay approx $8 a gallon for fuel?
I think you have to be a UK citizen to get free healthcare, but I am sure there are ways people who get around it.
So you want to relocate?
$8 a gallon for fuel is alot. Here in the U.S., it's about $2.70 a gallon. Is every country in Europe that high? Why is it that high anyway? Europe is closer to the Middle East than we are, so transport costs are lower, but of course there are other reasons I'm sure that come into play.
So gas would cost me about $100/month more in Europe, maybe less. When I retire in a few years, I'd like to spend more time in Europe. It would be great, if possible, if my wife and I can have free healthcare in Europe, without having to be a citizen.
Wow...after over two years Convert is here still trying. At least you are not trumpeting the latest DHI press releases anymore! (remember my post about DHI, "watch out when this POS breaks"....well it did, along with all the rest of your favs).
Anyway, median prices are BUNK...absolute bunk. The mix of housing sold is being skewed toward the upper end. Right now those FB's can still qualify because they are trading up, the lower end is dead (the last buyer left standing is not there).
The feel on the streets is far different than your NAR press releases, even in the northeast.
http://www.gloucestertimes.com/punews/local_story_236093921?page=0
âThirty-three condos at Pond View Village that couldnât be sold at full price and were pulled from a crumbling market earlier this year will be discounted and offered for sale again this fall, the owner-developer and the representative of major private lenders said yesterday.â
âWith the markdowns, Joseph Flatley, CEO of the investment corporation, said he expected the consortium, including Bank of America, âto take significant losses.â âWeâre going to take a hit on this and itâs going to be substantial,â he said.â
ââWeâve never had a loss in our 17 years - this is the first,â he added.â
âFlatleyâs company will decide the new, discounted price for the 33 units, whose sale was projected to provide much of the cash flow to repay the loans. The units were offered at an average price of $289,000 before they were pulled from the market.â
âBuyers will benefit from his consortiumâs losses, Flatley said. âYou sell it for what you can,â he said. âWeâll have to reduce the prices significantly.
My take,â said Sen. Bruce Tarr, âis itâs a terrific project caught in a market collapse. Now all parties are trying to make it fit into the requirements and get it sold.ââ