AP: Home Prices Diving FASTER

Editor’s Note: I’m sitting here with an upper sinus infection that is giving me the worst headache I ever had and that has lasted for 2 1/2 weeks. But it doesn’t compare to the headache the entire country endures while we continue to ignore the obvious. Unemployment and underemployment is very bad even by the weak standard employed by government measurements. Median income is diving and THAT is what is the final determinant in rents and housing prices. I can virtually guarantee that home prices, with the policies we are pursuing will continue to weaken and stay depressed for decades to come.

Economists generally agrees that housing leads the economy. Everyone knows now that the scam from Wall Street produced the illusion of a fast-paced market on the rise. Now we are returning back to earth and finding that the situation is worse than when we started, shattered by the pernicious schemes that remained unregulated, festering like untreated sores for 35 years.

In plain language we must stop foreclosures, we must do whatever it takes to raise median income and restore the middle class. It isn’t a matter of politics anymore. It is a matter of survival. Another disaster is looming, writ large on the wall by undeniable facts showing a declining economy, declining housing prices, elimination of wealth in the middle class, a new class of poverty, and a concentration of money where it isn’t getting spent, invested or loaned.

Do we really have to wait until another crash slaps us around? We have no reserves left. The next one will take us to unimaginable depths. Why are we waiting? What are we waiting for?

LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL

Home Prices Falling at Faster Rate, New Report Shows

By THE ASSOCIATED PRESS

The decline in home prices is accelerating across the nation, according to a new report, and a record number of foreclosures is expected to push prices down further through next year.

But a second report released on Tuesday indicated that consumer confidence in the economy rose in November to the highest level in five months amid some more hopeful signs.

The Standard & Poor’s Case-Shiller 20-city home price index released Tuesday fell 0.7 percent in September from August. Eighteen of the 20 cities recorded price declines.

Cleveland recorded the biggest drop, 3 percent from a month earlier. Prices in San Francisco, Los Angeles and San Diego, which had been showing strength this year, also dropped in September from August.

Washington and Las Vegas were the only metro areas to post gains in monthly prices.

The 20-city index has risen 5.9 percent from its April 2009 bottom. But it remains nearly 28.6 percent below the peak, in July 2006. And home prices have fallen in 15 of the 20 cities in the last year.

Prices rose in many cities from April through July, mostly helped by government tax credits that have since expired.

The national quarterly index, which measures home prices in nine regions of the country, dropped 2 percent in the third quarter from the previous quarter.

In the other report, the Conference Board said that its Consumer Confidence Index for November rose to 54.1 points, up from a revised 49.9 in October. Analysts were expecting 52.0. November’s reading is the highest since June’s 54.3.

The November reading is the highest since June, when the index stood at 54.3 just as the economy’s recovery started to lose momentum. Economists surveyed by Thomson Reuters had expected 52.0.

It takes a level of 90 to indicate a healthy economy, which has not been approached since the recession began in December 2007.

One component of the index, how Americans feel now about the economy, rose to 24, up from 23.5. The other gauge, which measures how American feel about the economy over the next six months, rose to 74.2, up from 67.5 last month.

“Consumer confidence is now at its highest level in five months, a welcome sign as we enter the holiday season,” Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement. “Consumers’ assessment of the current state of the economy and job market, while only slightly better than last month, suggests the economy is still expanding, albeit slowly. Hopefully, the improvement in consumers’ mood will continue in the months ahead.”

Others were less optimistic.

“The rise in consumer confidence in November is not consistent with a sustained acceleration in consumption growth at a time when income growth is weak, the unemployment rate is high and a double dip in house prices is under way,” said Paul Dales, United States economist at Capital Economics.

The consumer confidence index, which measures how respondents feel about business conditions, the job market and the economy over the next six months, has recovered fitfully since hitting a record low of 25.3 in February 2009. Economists watch confidence closely because consumer spending accounts for about 70 percent of economic activity and is crucial to a strong rebound. The improved confidence mirrors an increase in spending in November, fueled by early discounting on holiday goods that lured shoppers into stores.

The Conference Board’s index, based on a random survey mailed to 5,000 households from Nov. 1 to Nov. 19, showed that worries about jobs eased, but that concern remained high.

16 Responses

  1. EULE

    Ha!! Good post. And, it will get worst — especially after we stay out of the restaurants.

  2. Hello Linda again , print out on different dates your home price , so you can proof the CHANGE . I even took some picture from the computer sreen , if I could not print the page .

  3. Hello Linda, I am working with some CA Lawyer on
    a classaction against CORELOGIC for the Faulty AVM Estimates, what most banks and realtor use .
    My home droped 59% by Corelogic , and I have
    350 recives for $28,000.00 from Home Depot and Lowe in my hand , what I just spend .So ,you give me an answer , why my home droped 59 % ?
    I will tell you why , because around the corner in my subdivision was a home sold in the Family for $ 600 and my home droped on ONE day $ 21,000.00
    Investors will like this AVM , but not me.

  4. TOLL SWINGS TO PROFIT–WHAT BS-
    –TOLL LOST MONEY THE BUSINESS IS DROPPING ETC. WHAT SPINNERS IN THE NEWS.

    Toll Brothers Inc. swung to a profit, its second consecutive quarter in the black, as the luxury home builder was helped by a tax benefit and fewer write-downs, while revenue fell less than expected.

    Home builders’ results in recent quarters have been boosted by the rush of buyers to get the first-time home buyer tax credit before it ended this spring. Toll Brothers posted a surprise fiscal third-quarter profit in August, its first quarter in the black in nearly three years. Still, orders have dropped sharply for builders across the board since the credit’s expiration.

    “Based on the very low housing production over the past few years, we believe that pent-up demand is building and will be released once the employment and economic picture improves and people regain confidence,” said Chairman Robert Toll said on Thursday.

    For the fiscal fourth-quarter ended Oct. 31, Toll Brothers posted a profit of $50.5 million, or 30 cents a share, from a year-earlier loss of $111.4 million, or 68 cents. The most-recent quarter included a $59.9 million tax benefit, $27 million in write-downs and $500,000 of charges related to debt retirement. The year-earlier quarter included a $4.7 million tax expense, $85.5 million in write-downs and $11.6 million of charges related to debt retirement.

    Revenue fell 17% to $402.6 million.

    Analysts polled by Thomson Reuters had most recently forecast a loss of eight cents on $394 million in revenue.

    Gross margin surged to 13.9% from 0.8% and rose to 20.6% from 18.4% excluding write-downs.

    The company’s home deliveries fell 19% to 700 units. Net signed contracts fell 27% on both a dollars and units basis. The cancellation rate was 6.6%, compared with 15.6% a year earlier and 6.2% in the prior quarter.

  5. John,

    You better make sure it is BoA you owe – or you still owe someone – get indemnification.

  6. Hey A man save your money. Donn’t get into fight with bank. Take care of your kids education. no student loans

  7. it’s all good, but I’m selling my home to the bank and enjoying my life with my grown kids. I have $12,000 a month to help them in their education. Fuck B o A.

  8. I’ve got to agree with “the A Man” ,,the only reason I can give for the higher year over year black friday week is that people are getting out and buying while the sales are hot ,, overall things looked real tame to me ,, even WalMart was sending extra employees home due to slowness in my area.. I bought more than I should have but it was necessities (auto parts) at huge discounts (almost free after rebate).

    Neil ,, for the sinuses ,, you can attack them with antibiotics or you can attack with a blunt instrument ,, the blunt instrument would be something that kills bacteria indiscriminantly and immediately ,,, SALINE RINSES and/or a METALLIC substance (think ZINC) … don’t let it go too long … a sinus drip can lead to pneumonia.

  9. Well, now, this is not the story of the year I can assure you. It happened in the 80’s and 90’s and everyone knew it. Get organized.

  10. I hope everybody does not believe that krap coming out of the government agencies. They are fudging things. After all, there will be no unemployment insurance payments for something like 800,000 Americans. “Merry Christmas”. said the warden. Who do they think they are kidding? I think people should squat in their homes if they are left empty. People cannot afford to buy houses, and the banks are not lending money. Actually, when you think about it, the mega banks have shot themselves in the foot. Their reason for living is being pulled out from under them. They are superfluous. Why would you use them to buy a house, finance your business or much of anything else. All they do is fleece you. DO NOT SUPPORT THEM. MOVE YOUR BANK ACCOUNTS TO SMALL BANKS AND CREDIT UNIONS. Can’t wait for Wikileaks. Let’s hope they do not catch him. I also hope they do not kill him. http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  11. Where do they get these figures on public confidence? Mine is at an all-time low.

    And housing is getting worse…not better. Since it drives the economy, as you say, then things are worse.
    Must be that certain advertising is working on the public or perhaps a PR campaign put out by the White House.

    Yes, we desperately need to stop foreclosure nationwide! I’ll bet the poles are not reporting on the homeless people this holiday season.

    It seems to me that if you have a sinus condition that lasts that long, perhaps you have a fungus or something. I would get checked out for that or candida. Many people have it and apparently antibiotics can make it worse in the long run.

    There is a doctor named Lynn Jennings in Texas, I hear she is good.

  12. Neil , I just read the report from Case-Shiller Home Price Index. I can not agree with them , because I never see , that somebody included AVM’s , do the work and split the regular Sale from the forced Sale. I am 200% sure , that we would not have more lower Homeprices , because only some =walk away prices = make the dip. I know , it is easy to put all prices in one bucket , and everybody believe it. I would pay may 10 grand more in the same subdivision , if the home don’t have a clouded title , and let the forced sale alone.

  13. The only thing people bought were the 80% to 90% off or real hot items.

    The lines for returns on Sunday were longer.

    The Streets are empty here in Southern California.

  14. I hope you feel better soon Neil, I argee that someone needs to wake up. The game of musical chairs has stopped but they keep running around the chair. I think the 50’s sound good, houses where about 4-8k, you only had 1 car and credit was not really heard of yet. One person could run the household and the other bring home the paycheck. Sort of like Like it to Beaver. Maybe a simpler world is what is needed again.

  15. Yes. The mess is going to continue on until something draconian is done about it. We, the people need to be the agent of change, not sitting around waiting for somebody to do it for us. I have just sent a letter into the Reg. of Deeds her in Greenville County, SC attaching the post about MERS depriving counties of their recording fees. I sent it certified–that way they will actuall read it, I hope. Greenville County has lost a great deal of money in recording fees. This county is in a judicial state, but there have been lots of foreclosures. http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  16. Me too. the only diffierence is that it also makes my stomach ache too.

    I’m sitting here with an upper sinus infection that is giving me the worst headache I ever had and that has lasted for 2 1/2 weeks. But it doesn’t compare to the headache the entire country endures while we continue to ignore the obvious. Unemployment and underemployment is very bad even by the weak standard employed by government measurements. Median income is diving and THAT is what is the final determinant in rents and housing prices. I can virtually guarantee that home prices, with the policies we are pursuing will continue to weaken and stay depressed for decades to come.

    Be Strong and Courageous
    I pray for everybodies health.

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