360 Horizon: Housing Prices

Showing posts with label Housing Prices. Show all posts

09 September 2011

40,000 jobs to be cut in first round of Bank of America layoffs?

Vegas, Baby! Too Many Rooms, Not Enough People

20 Quotes From European Leaders That Prove That They Know That The Financial System In Europe Is Doomed

Real Estate In The USA: From Darkness To The Abyss

Here’s why Longshore workers are so angry

Rick Perry's Flaming Hypocrisy: Cuts His State's Firefighting Funds By 75%, Calls Obama For Federal Help Before The Debate, And During Debate Calls Obama "An Abject Liar"

Looks Like A Long, Cold, Hard Winter For Housing Prices

President Obama Proposes $447 Billion Jobs Plan

Labor Department Investigates Homebuilders For Not Paying Minimum Wage And Overtime

Greece Bonds Now Yielding 82% Tell You A Default Is Most Likely

Greek Slackers May Cause The Eurozone To Force Them Out The Door

We Had To Save The Banks To Sue Them

29 June 2011

2005 - Murdoch pays $580 Million for My Space; June 29, 2011 - Murdoch unloads My Space for around $35 Million

Bend over Greece, this is gonna hurt

Meredith Whitney: "Beware July 1st"

Global food production not able to keep up with demand

Corn and soybean prices on the rise again due to poorer US crop conditions

Bank of America about to settle for $8.5 Billion in losses suffered by investors in the bank's mortgage backed securities

Andy Beal's FDIC insured hedge fund

Greek Griftopia: Greece begins to lease and sell parts of its public wealth to satisfy global banksters

In the last 17 months, home prices in the 20 biggest US cities have not fallen as much as they did last month

The Painful Collapse of Empire: How the "American Dream" and American Exceptionalism Wreck Havoc on the World

30 December 2010

Robert Shiller of Case-Shiller Says His Firm's Forecasts Are Turning Increasingly Pessimistic

The Robert Shiller interview yesterday with the Wall Street Journal gives us some insight to the bad housing numbers just released this week:

Shiller admits this month's huge fall in prices caught Economists off guard. He says both Bloomberg and his firm poll Housing specialists and no one saw the pessimistic numbers just released for November coming.
Shiller says that if this keeps up through December (numbers to be released in January 2011), the overall housing market will have lost another 10% or more for the year 2010.
On one hand, Shiller says the latest downtrend in housing prices has only been in effect for the past few months, that a clear downtrend is not clearly seen.
Still, Shiller admitted, "But if home prices continue on this pace down, I think the Economy has serious reasons to worry.
"We just had six of twenty big cities we follow report new lows below the lows of 2009," points out Shiller. He believes the reason for that last plateau low in Spring 2009 is that in early February 2009 the US Government instituted the short-lived Homebuyer's Tax Credit. As he said, "That was a major turning point for the market. It suddenly turned up. And we saw price increases for much of 2009 . . . "
Shiller speculates that there will more than six new lower lows out of the 20 cities he and Case follow in the coming months.
He also expresses he though the 2009 Homebuyer Tax Credit was a good government stimulus but ponders, "How willing is Congress going to be to do it again?"
Despite what is happening at this moment in housing, Shiller tells us some forecasters from his firm Macro Markets are predicting a rise in housing prices by 7% by 2014 (or three years from now). And yet, he admits, more of his forecasters are becoming increasingly pessimistic.

28 December 2010

Rodney Anderson Says We Are "Absolutely" Heading For Double Dip Recession And In Housing; Robert Shiller Says Housing Optimism Is "Fading"

Rodney Anderson Says We Are "Absolutely" Heading For A Double Dip Recession And In Housing

Latest report from the Case-Shiller Index shows home prices in major cities across the USA dropping. At the same time, despite Quantitative Easing II, rates on 30 year mortgages are rising, not falling. As long term rates rise, houses and big ticket items become less affordable. As rates rise, the pressure will build on home prices to keep falling. As a Fox Business News anchor says in his intro to the following piece, "...no end in sight for the decline in house prices." His first guest Rodney Anderson, author of "Credit 911" tells us long rates have been going up for 6 weeks now and we have still not seen any influx of potential buyers thinking, "You know what? I want to get it (that house and lower rate loan) before it goes higher!"

Anderson also emphatically says, "Double Dip Recession in 2011? Absolutely!"

Is a Double-Dip Ahead for Housing?

Robert Shiller Says Housing Optimism "Fading"

Robert Shiller, Economics Professor from Yale University and the man who co-founded the Case-Shiller Index on Housing is every bit as glum as Rodney Anderson in the previous video. Shiller was interviewed by Bloomberg TV earlier today. He said his latest numbers are not good for the overall economy. He did say this could be a temporary "blip", but if the numbers continue downward, it will mean some big trouble for institutions and people.

Shiller, unlike Robert Anderson, is not as positive that we will suffer a Double Dip Recession. He seems to think Keynesian policy has saved us from a worse fate, that we have seen a mild recovery, but he hedges his words by saying we have to see what will happen next. The question in Shiller's mind is if this is like 1938-1939, when the economy started moving down again, and here today the people are in no mood for more stimulus or bailout packages.

Shiller also says the problem in Housing dates back to artificial government subsidies since 1934, that people are starting to question these subsidies, and that these questions are leading to anxiety and worry which hurts public optimism about the Housing Market.

As Bloomberg TV just removed the video clip from youtube moments ago, you may click here to go directly to the Bloomberg TV site to see the Robert Shiller interview.