ZILLOW: 2010 Home Prices DOWN $1.7 TRILLION PLUS ANOTHER 10% IN 2011

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

HOW LOW CAN IT GO?

“We don’t have enough time for the election cycle. We need change now — not change we can believe in but change we can see, feel and touch. Where the law permits it, start petition drives to remove people from public office — you don’t have to be prove you are right to do it, you only have to mean it and do it. The political process is not a court of law — the only thing you have to prove in politics is that you can win.”

EDITOR’S COMMENT: These figures don’t lie like the banks and government do. Home values lost more in 2010 than they did in 2009 and they are expected to drop even more in 2011. In an economy “driven by housing” as the economists like to say, the talk of recovery is way premature.

Where did the money go? ANSWER: WALL STREET, which is enjoying record profits and bonuses even with settlements in the hundreds of millions. The policy makers maintain their path of doing too little too late when what we need is a game changer right now. These losses to homeowners are multiplied by the trillions in taxpayer money (that’s ALL people, homeowner or not) delivered on a silver platter to Wall Street to cover fictional losses which obviously never occurred.

Meanwhile Main Street continues down the tubes. In plain language Wall Street took the money out of the marketplace and out of the taxpayer funds. In plain language it needs to go back where it came from. The money wasn’t earned — it was taken by fraud, artifice and deception from one end to the other.

If one person or even a group of people stole a few million dollars or even a few hundred million dollars, or in the case of Madoff, tens of billions, they would go to jail. a receiver would be appointed and the money would be recovered as well as possible and returned to its rightful owner. But when the megabanks do it, the law doesn’t apply. Well that is easy, with Peter Orszag, former White House budget director taking a fat job at Citi and the usual revolving door between government and the financial industry in full swing, how could we expect anything different?

Here is the living truth: forget ideology, socialism and capitalism. Unless we apply the rule of law to these megabanks, break them up into controllable entities, and return the stolen wealth to the homeowners, we won’t have an economy worth talking about, we won’t have the dollar viewed as the “almighty dollar” and we will be no better off than the other banana republics that are run by the banks and titans of industry. We don’t actually need new laws, new rules or new regulations. What we need is the willingness on the part of you and your friends to make it known that you have had enough and you want the old laws enforced.

We don’t have enough time for the election cycle. We need change now — not change we can believe in but change we can see, feel and touch. Where the law permits it, start petition drives to remove people from public office — you don’t have to be prove you are right to do it, you only have to mean it and do it. The political process is not a court of law — the only thing you have to prove in politics is that you can win.

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Zillow: Home values crater by $1.7 trillion in 2010

by KERRY CURRY — Thursday, December 9th, 2010, 10:19 am

U.S. homes are expected to lose more than $1.7 trillion in value this year, 63% more than the estimated $1 trillion lost in 2009, according to Zillow.

The decline brings the total value lost since the market peaked in June 2006 to $9 trillion. By comparison, from 2001 to the end of September 2010, the war in Iraq has cost $750.8 billion, according to a September report by the Congressional Research Service.

The second half of the year was more punishing on values. From January to June, the housing market lost $680 billion. From June to December, Zillow projects residential home value losses will top $1 trillion.

Less than one-fourth, or 31, of the 129 markets tracked by Zillow showed gains in total home values during 2010. Among those were the Boston metropolitan statistical area which gained $10.8 billion in value, and the San Diego MSA, which gained $10.2 billion.

“Government interventions like the homebuyer tax credit helped buoy the market during the second half of 2009 and the first half of 2010, but we saw a renewed downturn in the last half of this year.  It’s a testament to the nearly irresistible force of the overall market correction that government incentives can only temporarily hold back the tide, and that the market will ultimately find its natural equilibrium of supply and demand,” said Zillow Chief Economist Dr. Stan Humphries. (Click to expand.)

When we bounced off the false bottom in 2009, the market gained strength through the expiration of the government tax credits. The second half of 2010 saw house prices roll over and begin another leg down. The downtrend is expected to continue throughout 2011.

Fitch sees 10% drop in home prices in 2011, negative outlook for MBS

by JASON PHILYAW — Thursday, December 9th, 2010, 12:37 pm

Fitch Ratings expects another 10% decline in home prices in 2011, as the supply of distressed properties continues to weigh down the housing market.

Accordingly, analysts maintained the agency’s negative outlook for the residential mortgage-backed securities space and said 53% of all investment-grade RMBS rated by Fitch have a negative outlook. The number of downgrades will once again outpace upgrades in RMBS, but not as severely as the past few years, according to analysts.

Fitch said the robo-signing debacle plaguing loan servicers, loan buyback pressures hitting mortgage lenders and a handful of other macroeconomic issues cause analysts to “remain cautious” regarding a sustainable stabilization for the market.

“Key factors that will continue to weight on performance include negative equity for recent vintage collateral, lower loan modification volume, and slightly higher loss severities,” analysts said.

Fitch also said the market for commercial mortgage-backed securities should improve next year, as property market fundamentals have turned the corner. Still loan performance within the CMBS space will begin to diverge from the fundamentals next year because of asset-specific tenant rollover and high leverage, according to analysts.

Analysts said vacancies have peaked in many of the largest metropolitan areas of the country while rents have reached bottom indicating some stabilization. But the lack of construction financing over the past three years skews those gains, meaning “it will be some time before income growth is seen.”

We discussed the market’s fate in High prices, low demand, and large supply means lower prices ahead. Lower prices is the consensus opinion among economists outside of the NAr.

2 Responses

  1. […] link: ZILLOW: 2010 Home Prices DOWN $1.7 TRILLION PLUS ANOTHER 10% IN 2011   Tags: corruption, gtc | honor, securities fraud Posted in: […]

  2. ZILLOW , the did not included the $ 200.00 Houses in Palm Beach , so the should go down another 50 %, what a BS. Corelogic the same way.
    You have to split regular sale from the Foreclosure, but then you need two computer and a brain.

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