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View Full Version : Economics Please, god: the housing market may be starting to recover.


Direckshun
06-28-2012, 06:21 PM
Took us long enough. Jesus.

http://www.nytimes.com/2012/06/28/business/economy/new-indications-housing-recovery-is-under-way.html?_r=2

After Years of False Hopes, Signs of a Turn in Housing
By BINYAMIN APPELBAUM
Published: June 27, 2012

WASHINGTON — Announcements of a housing recovery have become a wrongheaded rite of summer, but after several years of false hopes, evidence is accumulating that the optimists may finally be right.

The housing market is starting to recover. Prices are rising. Sales are increasing. Home builders are clearing lots and raising frames.

Joe Niece, a real estate agent in the Minneapolis suburb of Eden Prairie, said he recently concluded a streak of 13 consecutive bidding wars over homes that his clients wanted to buy. Each sold above the asking price.

“I just had a home that wasn’t supposed to go on the market for two weeks sold before it even went on the market,” Mr. Niece said. “It’s definitely a lot different than what we saw” during the last few summers.

Like the economic recovery that began three years ago, what happens next is likely to prove a little disappointing. The pace of recovery will probably be slow, and the prices of many homes will continue to decline.

Millions of people remain underwater, owing more on their homes than the homes are worth, and unable to sell. Millions of families still face foreclosure (http://topics.nytimes.com/top/reference/timestopics/subjects/f/foreclosures/index.html?inline=nyt-classifier). And a setback in the still-fragile economic recovery could easily reverse the uptick in housing prices, too.

But roughly six years after the housing market began its longest and deepest slide since the Great Depression (http://topics.nytimes.com/top/reference/timestopics/subjects/g/great_depression_1930s/index.html?inline=nyt-classifier), a growing number of experts and people who actually put money into housing believe the end has come.

“Our sense is that the market is recovering, and we’re extremely confident that it’s not going to get worse,” said Ronnie Morgan, a San Diego real estate professional who recently created a $10 million partnership to buy foreclosed homes. The group, Alegria Real Estate Funds, already has bought about 20 homes in suburban communities, most of which they plan to hold as rental properties.

“It feels very much like we’ve hit a bottom and we’re starting to come off of that bottom,” said Stuart Miller, chief executive of Lennar, a major national home builder based in Miami. The company said Wednesday that second-quarter profits were higher than expected (http://phx.corporate-ir.net/phoenix.zhtml?c=65842&p=irol-newsArticle&ID=1709272&highlight=), and orders for new homes rose 40 percent.

“I’m a little nervous,” Mr. Miller quickly added in a conference call with analysts, “about saying the word ‘recovery.’ ”

The trend is clear in the data. The widely respected S.&P./Case-Shiller index reported earlier this week (http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline%3B+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1245335808401&blobheadervalue3=abinary%3B+charset%3DUTF-8&blobnocache=true) that sales prices for existing homes rose in April for the first time this year. Several other measures, including a seasonally adjusted version of the index, show that price increases began in February. The pace of housing construction has increased. And the National Association of Realtors (http://topics.nytimes.com/top/reference/timestopics/organizations/n/national_association_of_realtors/index.html?inline=nyt-org) said Wednesday (http://www.realtor.org/news-releases/2012/06/pending-home-sales-up-in-may-continue-pattern-of-strong-annual-gains) that pending home sales climbed to the highest level since the end of a federal tax credit for first-time buyers in September 2010.

This is the fourth consecutive year that the housing market has shown signs of revival, and each previous episode ended with prices renewing their downward slide.

But with each passing year, an eventual recovery has grown more likely. Prices have continued to fall, and the economy has continued to recover, a combination that has expanded the pool of potential buyers. The population has continued to grow while few new homes have been built.

Basic indicators of market health that bulged during the bubble, like the ratio of housing prices to income, have returned to more normal levels.

Government efforts to help homeowners have intensified, allowing more borrowers to refinance or avoid foreclosure.

“All bets are off if anything happens to the economy, but apart from that, I think the fundamentals look better than they’ve looked in 17 or 18 years,” said Richard K. Green, a professor of real estate at the University of Southern California.

Professor Green cited the combination of rising rents and low mortgage rates as a powerful inducement to potential buyers, both renters who would prefer to own and investors who want to become landlords.

“Compared to a lot of other investments right now this looks pretty good,” he said.

The influx of investors is a major reason that the market is looking stronger. Mr. Morgan, 56, built apartments before the housing crash. In 2010, seeing a new opportunity, he and some friends started bidding at the foreclosure auctions then held on the steps of the San Diego County Courthouse.

At first they bought properties to renovate and resell. Now they are focused on potential rental properties in the kinds of gated, planned communities in suburban San Diego that once were populated almost exclusively by people who owned their homes. Some of their tenants are former homeowners.

And competition has increased. The auctions were moved from the courthouse steps last year because the crowds had grown too large.

“There’s not a whole lot of other places to put your money,” Mr. Morgan said.

There are still reasons for caution. An unusually warm winter seems to have given a temporary and misleading boost to a range of economic indicators.

The pace of economic growth remains slow and fragile, shadowed by the risk that politicians in Europe and Washington will fail to address looming problems.

And the rise in prices is happening despite the vast number of vacant houses awaiting buyers, up to two million more than the normal level, with several million more houses still at risk of being foreclosed.

But this “shadow inventory” is not distributed uniformly, according to a new analysis by Goldman Sachs. Even within metropolitan areas like Phoenix, the vacant houses are clustered in less desirable neighborhoods, while buyers are seeking homes in areas where there are few vacancies.

Under these circumstances, the researchers concluded, “It is possible for us to see both house price increases and excess housing supply at the same time.”

Indeed, in a growing number of areas demand for homes is outstripping supply.

The number of homes for sale has been falling for more than a year, according to the National Association of Realtors (http://www.realtor.org/news-releases/2012/06/existing-home-sales-constrained-by-tight-supply-in-may-prices-continue-to-gain). Some owners are waiting for prices to rise; some of them must wait because they are underwater.

Mr. Niece, the Minnesota real estate agent, said he and his partner had seen their book of listings decline from about 120 properties to 70 properties, about 45 of which already are under contract.

“I have buyers every single day complaining that they can’t find houses,” he said.

Driving through a neighboring suburb last week, Mr. Niece said that he passed a sign outside another real estate office that read, “The market is great. We’ve sold all of our inventory. We need listings.”

Iz Zat Chew
06-28-2012, 06:43 PM
Took us long enough. Jesus.

http://www.nytimes.com/2012/06/28/business/economy/new-indications-housing-recovery-is-under-way.html?_r=2

After Years of False Hopes, Signs of a Turn in Housing
By BINYAMIN APPELBAUM
Published: June 27, 2012

WASHINGTON — Announcements of a housing recovery have become a wrongheaded rite of summer, but after several years of false hopes, evidence is accumulating that the optimists may finally be right.

The housing market is starting to recover. Prices are rising. Sales are increasing. Home builders are clearing lots and raising frames.

Joe Niece, a real estate agent in the Minneapolis suburb of Eden Prairie, said he recently concluded a streak of 13 consecutive bidding wars over homes that his clients wanted to buy. Each sold above the asking price.

“I just had a home that wasn’t supposed to go on the market for two weeks sold before it even went on the market,” Mr. Niece said. “It’s definitely a lot different than what we saw” during the last few summers.

Like the economic recovery that began three years ago, what happens next is likely to prove a little disappointing. The pace of recovery will probably be slow, and the prices of many homes will continue to decline.

Millions of people remain underwater, owing more on their homes than the homes are worth, and unable to sell. Millions of families still face foreclosure (http://topics.nytimes.com/top/reference/timestopics/subjects/f/foreclosures/index.html?inline=nyt-classifier). And a setback in the still-fragile economic recovery could easily reverse the uptick in housing prices, too.

But roughly six years after the housing market began its longest and deepest slide since the Great Depression (http://topics.nytimes.com/top/reference/timestopics/subjects/g/great_depression_1930s/index.html?inline=nyt-classifier), a growing number of experts and people who actually put money into housing believe the end has come.

“Our sense is that the market is recovering, and we’re extremely confident that it’s not going to get worse,” said Ronnie Morgan, a San Diego real estate professional who recently created a $10 million partnership to buy foreclosed homes. The group, Alegria Real Estate Funds, already has bought about 20 homes in suburban communities, most of which they plan to hold as rental properties.

“It feels very much like we’ve hit a bottom and we’re starting to come off of that bottom,” said Stuart Miller, chief executive of Lennar, a major national home builder based in Miami. The company said Wednesday that second-quarter profits were higher than expected (http://phx.corporate-ir.net/phoenix.zhtml?c=65842&p=irol-newsArticle&ID=1709272&highlight=), and orders for new homes rose 40 percent.

“I’m a little nervous,” Mr. Miller quickly added in a conference call with analysts, “about saying the word ‘recovery.’ ”

The trend is clear in the data. The widely respected S.&P./Case-Shiller index reported earlier this week (http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline%3B+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1245335808401&blobheadervalue3=abinary%3B+charset%3DUTF-8&blobnocache=true) that sales prices for existing homes rose in April for the first time this year. Several other measures, including a seasonally adjusted version of the index, show that price increases began in February. The pace of housing construction has increased. And the National Association of Realtors (http://topics.nytimes.com/top/reference/timestopics/organizations/n/national_association_of_realtors/index.html?inline=nyt-org) said Wednesday (http://www.realtor.org/news-releases/2012/06/pending-home-sales-up-in-may-continue-pattern-of-strong-annual-gains) that pending home sales climbed to the highest level since the end of a federal tax credit for first-time buyers in September 2010.

This is the fourth consecutive year that the housing market has shown signs of revival, and each previous episode ended with prices renewing their downward slide.

But with each passing year, an eventual recovery has grown more likely. Prices have continued to fall, and the economy has continued to recover, a combination that has expanded the pool of potential buyers. The population has continued to grow while few new homes have been built.

Basic indicators of market health that bulged during the bubble, like the ratio of housing prices to income, have returned to more normal levels.

Government efforts to help homeowners have intensified, allowing more borrowers to refinance or avoid foreclosure.

“All bets are off if anything happens to the economy, but apart from that, I think the fundamentals look better than they’ve looked in 17 or 18 years,” said Richard K. Green, a professor of real estate at the University of Southern California.

Professor Green cited the combination of rising rents and low mortgage rates as a powerful inducement to potential buyers, both renters who would prefer to own and investors who want to become landlords.

“Compared to a lot of other investments right now this looks pretty good,” he said.

The influx of investors is a major reason that the market is looking stronger. Mr. Morgan, 56, built apartments before the housing crash. In 2010, seeing a new opportunity, he and some friends started bidding at the foreclosure auctions then held on the steps of the San Diego County Courthouse.

At first they bought properties to renovate and resell. Now they are focused on potential rental properties in the kinds of gated, planned communities in suburban San Diego that once were populated almost exclusively by people who owned their homes. Some of their tenants are former homeowners.

And competition has increased. The auctions were moved from the courthouse steps last year because the crowds had grown too large.

“There’s not a whole lot of other places to put your money,” Mr. Morgan said.

There are still reasons for caution. An unusually warm winter seems to have given a temporary and misleading boost to a range of economic indicators.

The pace of economic growth remains slow and fragile, shadowed by the risk that politicians in Europe and Washington will fail to address looming problems.

And the rise in prices is happening despite the vast number of vacant houses awaiting buyers, up to two million more than the normal level, with several million more houses still at risk of being foreclosed.

But this “shadow inventory” is not distributed uniformly, according to a new analysis by Goldman Sachs. Even within metropolitan areas like Phoenix, the vacant houses are clustered in less desirable neighborhoods, while buyers are seeking homes in areas where there are few vacancies.

Under these circumstances, the researchers concluded, “It is possible for us to see both house price increases and excess housing supply at the same time.”

Indeed, in a growing number of areas demand for homes is outstripping supply.

The number of homes for sale has been falling for more than a year, according to the National Association of Realtors (http://www.realtor.org/news-releases/2012/06/existing-home-sales-constrained-by-tight-supply-in-may-prices-continue-to-gain). Some owners are waiting for prices to rise; some of them must wait because they are underwater.

Mr. Niece, the Minnesota real estate agent, said he and his partner had seen their book of listings decline from about 120 properties to 70 properties, about 45 of which already are under contract.

“I have buyers every single day complaining that they can’t find houses,” he said.

Driving through a neighboring suburb last week, Mr. Niece said that he passed a sign outside another real estate office that read, “The market is great. We’ve sold all of our inventory. We need listings.”

Not stuff people looking to buy want to hear.

Bump
06-28-2012, 07:17 PM
just in the nick of time!

cosmo20002
06-28-2012, 07:20 PM
Well, we'll see what we can do to stop that.

/ Republicans

Iz Zat Chew
06-28-2012, 07:22 PM
Well, we'll see what we can do to stop that.

/ Republicans

I have never seen anyone with so much hate in their being. You really should find a therapist.

cosmo20002
06-28-2012, 07:26 PM
I have never seen anyone with so much hate in their being. You really should find a therapist.

:hmmm:

I think you are a stupid ****, no I know you are a stupid ****. You are a sheep that follows your little black shepard.

ROFL

Iz Zat Chew
06-28-2012, 07:55 PM
Quote:
<TABLE border=0 cellSpacing=0 cellPadding=6 width="100%"><TBODY><TR><TD style="BORDER-BOTTOM: 1px inset; BORDER-LEFT: 1px inset; BORDER-TOP: 1px inset; BORDER-RIGHT: 1px inset" class=alt2>Originally Posted by Iz Zat Chew http://www.chiefsplanet.com/BB/images/buttons/viewpost.gif (http://www.chiefsplanet.com/BB/showthread.php?p=8708356#post8708356)
I have never seen anyone with so much hate in their being. You really should find a therapist.

</TD></TR></TBODY></TABLE>

Quote:
<TABLE border=0 cellSpacing=0 cellPadding=6 width="100%"><TBODY><TR><TD style="BORDER-BOTTOM: 1px inset; BORDER-LEFT: 1px inset; BORDER-TOP: 1px inset; BORDER-RIGHT: 1px inset" class=alt2>Originally Posted by Iz Zat Chew http://www.chiefsplanet.com/BB/images/buttons/viewpost.gif (http://www.chiefsplanet.com/BB/showthread.php?p=8706471#post8706471)
I think you are a stupid ****, no I know you are a stupid ****. You are a sheep that follows your little black shepard.

</TD></TR></TBODY></TABLE>

<!-- / message --><!-- sig -->

What makes you think that is hate? Obama is leading you around like a sheep, any you hate me for telling you that?
Should I have called him the pied piper? Would that have made you happy or would it have made you call me a hater because the pied piper might have been gay?

What a shame, such a waste of a life.

Ace Gunner
06-28-2012, 08:25 PM
"Our sense is that the market is recovering"

My sense is that these assholes shit rainbows on demand.

Setsuna
06-28-2012, 08:46 PM
Cosmo almost trolls just as well as LAChieffan.

HonestChieffan
06-28-2012, 09:27 PM
With the ruling today no business will be adding people, especially small business. Id expect some real cuts and business battening down till November. The cost and the uncertainty that we all see is making business people back up not expand.

FD
06-28-2012, 10:02 PM
With the ruling today no business will be adding people, especially small business. Id expect some real cuts and business battening down till November. The cost and the uncertainty that we all see is making business people back up not expand.

But wouldn't you say uncertainty was at its height over the past 2 months, and now most of the uncertainty has been resolved. If uncertainty is what is hampering a strong recovery, shouldn't we expect this resolution of it to provide a boost?

cosmo20002
06-28-2012, 10:06 PM
With the ruling today no business will be adding people, especially small business. Id expect some real cuts and business battening down till November. The cost and the uncertainty that we all see is making business people back up not expand.

HCF makes a dire prediction = positive economic indicator

Cave Johnson
06-28-2012, 10:13 PM
With the ruling today no business will be adding people, especially small business. Id expect some real cuts and business battening down till November. The cost and the uncertainty that we all see is making business people back up not expand.

Yes, for a mandate that doesn't go into effect until 2014. ;)

HonestChieffan
06-28-2012, 10:28 PM
But wouldn't you say uncertainty was at its height over the past 2 months, and now most of the uncertainty has been resolved. If uncertainty is what is hampering a strong recovery, shouldn't we expect this resolution of it to provide a boost?


And what was decided today that is good for small and medium sized business? The uncertainty was removed and replaced with a certainty that is anti hiring. And now we will have till November to see if this can be removed and that would be a boost.

HonestChieffan
06-28-2012, 10:32 PM
Cramer had an interesting take....another reason to not hire and another reason to fire...ouch.

<iframe width="420" height="315" src="http://www.youtube.com/embed/klIcqNI4dLc" frameborder="0" allowfullscreen></iframe>

Brock
06-28-2012, 10:34 PM
Did we not learn Cramer is a dishonest dipshit?

alnorth
06-28-2012, 10:45 PM
As the article hints at, we've had false alarms before. Lets wait until prices continue to climb through August before we uncork the champagne.

cosmo20002
06-28-2012, 10:51 PM
Cramer had an interesting take....another reason to not hire and another reason to fire...ouch.


Not sure which is less reliable--a Jim Cramer assertion or an HFC assertion.

jjjayb
06-29-2012, 06:21 AM
Well, we'll see what we can do to stop that.

/ Republicans

They won't need to. Obama will find a way to screw it up all by himself.

FD
06-29-2012, 08:39 AM
And what was decided today that is good for small and medium sized business? The uncertainty was removed and replaced with a certainty that is anti hiring. And now we will have till November to see if this can be removed and that would be a boost.

So the problem isn't uncertainty but new regulations. Thats a fine position, I was just pointing out the problem with the 'uncertainty' canard.

BTW, if the resolution of the uncertainty is so bad for business and our economy, why didn't the stock market tank yesterday? The ruling was a surprise one.

ChiTown
06-29-2012, 08:52 AM
Well, we'll see what we can do to stop that.

/ Republicans

:spock::shake:

LOCOChief
06-29-2012, 09:02 AM
Unfortunately in most areas values are not on the rise and a large number of agencies REO's are getting ready to hit the market. Most areas throughout the US are still considered "declining markets" according to residential appraisers. New construction appraisal values based on a market approach are coming in well below construction costs. Getting a residential home loan is tougher than it's been in over 20 years thanks in large part to Dodd / Frank which is only about 50% implemented, if it hits 100% we're all hamstrung.
When these waves of REO's hit and spike inventory the current numbers will be revised to something less attractive just like the employment data.

bsp4444
06-29-2012, 09:15 AM
I have never seen anyone with so much hate in their being. You really should find a therapist.

I guess you've never seen a post from HonestChiefsFAn?

BIG_DADDY
06-29-2012, 09:29 AM
Get out while you can. Watch what happens when interest rates go up and they will.

HonestChieffan
06-29-2012, 09:31 AM
Inventory has to fall a long ways. Builders currently in KC area are doing ok but only in the 400k up homes. Blue Vally, some Lees Summit, some up north. But the vast majority of homes on the market are in lower than 300k range and that has to move to make a real difference.

To do that people need to be back to work and we see that is not happening. Nor will we see business climate advance till at least past the election. Toss in the increased taxes we may face with the costs associated with ObamaCare if its not overturned and the housing picture is muddy at best with not a broad recovery.

Great Expectations
06-29-2012, 09:51 AM
So the problem isn't uncertainty but new regulations. Thats a fine position, I was just pointing out the problem with the 'uncertainty' canard.

BTW, if the resolution of the uncertainty is so bad for business and our economy, why didn't the stock market tank yesterday? The ruling was a surprise one.

The stock market is more concerned with Europe right now. Ending Obama care would cause another boom. However some parts of the Obama care I really like. Kids should be able to stay on parents insurance, old people should be able to get cancer treatment, people that have had problems before should be able to get insurance again.

La literatura
06-29-2012, 09:57 AM
Get out while you can. Watch what happens when interest rates go up and they will.

Do we have the necessary banking regulations in place to support low interest rates and increasing home prices? I sure hope so. Otherwise, as I understand it, interest rates need to go back up.

KC native
06-29-2012, 10:00 AM
I doubt that we are about to start an upswing. We've been getting a floor in prices because banks "voluntarily" stopped foreclosing due to the fraud-closure issues. Well, the foreclosures are starting back up and we still have tremendous amounts of underwater home owners. We probably wonkt go much further down, but there are still too many headwinds to see real price increases.

KC native
06-29-2012, 10:05 AM
Do we have the necessary banking regulations in place to support low interest rates and increasing home prices? I sure hope so. Otherwise, as I understand it, interest rates need to go back up.

Apples and oranges. Low interest rates alone aren't a problem. Low interest rates, bad regulators, and increased leverage are a problem.

Housing is mostly a supply and demand reationship. When lenders were throwing money around due to low rates, securitization, and general dumbassery that distorted that relationship.

Finally, interest rates do NOT need to go up right now. Inflation is non-existent and deflation is still a near term risk (though much less so than a few years ago).

FD
06-29-2012, 10:17 AM
Some positive indicators:

http://www.washingtonpost.com/blogs/ezra-klein/files/2012/06/home-prices.jpg

http://www.washingtonpost.com/blogs/ezra-klein/files/2012/06/home-sales.jpg

vailpass
06-29-2012, 10:49 AM
No.

Consumer spending stalls, morale at six-month low




By Lucia Mutikani

WASHINGTON | Fri Jun 29, 2012 11:08am EDT

(Reuters) - Consumer spending stalled in May as purchases of autos flagged while confidence dropped to a six-month low in June, the latest signs of trouble for the economy.

Although another report on Friday showed manufacturing activity in the Midwest picked up this month, factories saw a modest decline in new orders.

The Commerce Department said consumer spending was unchanged in May, failing to rise for the first time since November, after nudging up 0.1 percent the prior month. Consumer spending accounts for more than two-thirds of U.S. economic activity.

"We're seeing consumer spending come off the boil a bit over the last few months. That's to be expected, given uncertainty across the board and the troubling headlines we've seen," said Omer Esiner, chief analyst at Commonwealth Foreign Exchange in Washington.

Spending could weaken further as uncertainty generated by the debt crisis in Europe and an unclear fiscal policy path at home force Americans to scale back on consumption.

A separate report showed the Thomson Reuters/University of Michigan's consumer sentiment index fell to 73.2 in June from 79.3 in May. While the outlook for the economy has darkened in recent months, it continues to expand modestly.

A third report showed factory activity in the Midwest ticked up in June, with employment rising to its highest level since February. New orders, however, edged down.

The Institute for Supply Management-Chicago business barometer rose to 52.9 this month from 52.7 in May. A reading above 50 indicates expansion in the regional economy.

"The message from Chicago is that things are not spiraling down out of control," said Dean Maki, chief economist at Barclays in New York.

The reports had little impact on U.S. financial markets, with investors focused on developments in Europe. Euro zone leaders agreed to allow a rescue fund to be used to stabilize the region's banks, sending stocks on Wall Street rallying.

U.S. Treasury debt prices fell, while the dollar weakened against basket of currencies.

INFLATION PRESSURES MUTED

Consumer spending rose 0.1 percent after adjustment for inflation in May. The small rise caused economists to tweak their second-quarter growth forecasts. Economists at Goldman Sachs lowered their gross domestic product estimate to a 1.6 percent annual pace from 1.7 percent.

The economy expanded at a tepid 1.9 percent rate in the first quarter.

While weak gasoline prices contributed to holding down spending last month, they put downward pressure on inflation. A price index for personal spending fell 0.2 percent in May, the first decline in a year. The index was flat in April.

In the 12 months through May, the PCE index was up 1.5 percent, the smallest increase since January last year. It increased 1.9 percent in April.

A core measure that strips out food and energy costs advanced 0.1 percent last month after rising by the same margin in April. In the 12 months through May, the core PCE rose 1.8 percent, slowing from 2.0 percent the prior month.

Last month, spending on long lasting goods, like autos, fell 0.4 percent after dipping 0.2 percent in April. Auto sales had been boosted by pent-up demand after last year's earthquake and tsunami in Japan left showrooms bereft of popular models.

Automakers reported unit sales declined in May.

Spending on nondurable goods fell 0.8 percent, with services advancing 0.3 percent.

Weak income growth as the economy struggles to generate enough jobs to cut into high unemployment is also curbing spending. Income rose 0.2 percent after a similar gain in April. The increase was in line with economists' expectations.

The amount of income available to households after accounting for taxes and inflation, rose 0.3 percent. That followed a 0.1 percent gain in April.

With spending less than income, the saving rate rose to 3.9 percent from 3.7 percent the prior month.

http://www.reuters.com/article/2012/06/29/us-usa-economy-spending-idUSBRE85S0QD20120629

ChiefsCountry
06-29-2012, 10:54 AM
Funny article considering I'm in real estate. Its not looking too good right now.

patteeu
06-29-2012, 11:11 AM
The bad news: The housing market won't really start recovering until we have a change of administration.

The good news: January 20, 2013.

DJJasonp
06-29-2012, 08:06 PM
The wife and I just got pre-approved (took 6 months of work).....

In the San Diego market......prices are not going up....mostly down.

Someone previously mentioned (and they're right).......the next wave of REO's is on the way, and it's not going to be pretty.

At that same time, interest rates will more than likely be heading up.

We looked at 9 houses last weekend, 7 of which were short-sales.

You should see the number of houses that pop-up on searches that are either auction or the foreclosure process just started.

Still a buyer's market. (we're just hoping to get in before rates go up)

KC native
06-30-2012, 01:05 PM
The bad news: The housing market won't really start recovering until we have a change of administration.

The good news: January 20, 2013.

:spock: How the fuck do you figure that?

patteeu
06-30-2012, 01:59 PM
:spock: How the **** do you figure that?

That's the day Mitt Romney will become President. Just hunker down and hang on until then and you'll be alright.

RNR
06-30-2012, 02:18 PM
That's the day Mitt Romney will become President. Just hunker down and hang on until then and you'll be alright.

LMAO most everyone sees him as nothing more than ABO. He is one of the weakest candidates to ever run. You have become an amusing groupie. Clearly whoever the right props up becomes your hero~

Chiefshrink
06-30-2012, 02:19 PM
Cosmo almost trolls just as well as LAChieffan.

Cosmo is 'orange'.

Chiefshrink
06-30-2012, 02:20 PM
:spock: How the **** do you figure that?

And you are a financial planner????:spock:ROFLROFLROFL

BucEyedPea
06-30-2012, 02:20 PM
Yes, for a mandate that doesn't go into effect until 2014. ;)

But Congress, the one that claims to hate it and to repeal it, has had to fund it since it was passed to make it ready for that point. You'd think they'd just refuse to fund it.

BucEyedPea
06-30-2012, 02:26 PM
LMAO most everyone sees him as nothing more than ABO. He is one of the weakest candidates to ever run. You have become an amusing groupie. Clearly whoever the right props up becomes your hero~

Well, I was leaning toward Johnson but I may just consider Romney now for real. Afterall, a 50% chance of an Obamacare repeal is better than no chance with Obama. I really hate the warmonger wing though with them now going on about Russia and even China getting cornered for world hegemony. But Obama is only a 50% chance there too, leaving me with another protest vote just to piss off the Rs with a message. I was hoping the SC would have taken care of this issue for me. I thought there was a chance that the mandate would not hold up as a mandate—but that Kennedy wouldn't take the whole thing out of play. I just thought with that, congress and the president would know it couldn't work without it then. Sooo.....if Romney is making this pledge it's iffy, even more so with his "replace" slogan. With enough of the right kind of Rs in congress to impose their will the odds are better but not great. So I am going to reconsider my vote now. Probably won't decide until the last minute.

BucEyedPea
06-30-2012, 02:27 PM
And you are a financial planner????:spock:ROFLROFLROFL

I wouldn't bring my business to him. He probably helps lefties and corporatists get rich off govt though.

BucEyedPea
06-30-2012, 02:32 PM
Driving through a neighboring suburb last week, Mr. Niece said that he passed a sign outside another real estate office that read, “The market is great. We’ve sold all of our inventory. We need listings.”

Realtors ALWAYS say that! It's good for business. I've seen then say it up to the point of collapse.
I think some regions are doing better but it's by region not some macro market phenomena.
When it does pick up, expect more inflation, to factor in.

Chiefshrink
06-30-2012, 02:38 PM
Well, I was leaning toward Johnson but I may just consider Romney now for real. Afterall, a 50% chance of an Obamacare repeal is better than no chance with Obama. I really hate the warmonger wing though with them now going on about Russia and even China getting cornered for world hegemony. But Obama is only a 50% chance there too, leaving me with another protest vote just to piss off the Rs with a message. I was hoping the SC would have taken care of this issue for me. I thought there was a chance that the mandate would not hold up as a mandate—but that Kennedy wouldn't take the whole thing out of play. I just thought with that, congress and the president would know it couldn't work without it then. Sooo.....if Romney is making this pledge it's iffy, even more so with his "replace" slogan. With enough of the right kind of Rs in congress to impose their will the odds are better but not great. So I am going to reconsider my vote now. Probably won't decide until the last minute.

You repeal the tax you 'neuter' Obamascare. With this being an election year this will have a chance to pass in the Senate and if does pass, Obama will VETO IT and thus seal his own fate not being re-elected and then after the election we will hopefully get totally rid of it.

KC native
06-30-2012, 02:42 PM
That's the day Mitt Romney will become President. Just hunker down and hang on until then and you'll be alright.

Ah so it was just a bad joke.

KC native
06-30-2012, 02:44 PM
And you are a financial planner????:spock:ROFLROFLROFL

No, I'm not. Never have been nor will I ever be a financial planner. They're glorified insurance salesman. Try again psuedo-shrink.

KC native
06-30-2012, 02:46 PM
I wouldn't bring my business to him. He probably helps lefties and corporatists get rich off govt though.

ROFL I don't do sales. Go ahead and take your money to your ameriprise guy. We'll that is if you have any money considering you've been unemployed for the last 2 years.

BucEyedPea
06-30-2012, 03:05 PM
You repeal the tax you 'neuter' Obamascare. With this being an election year this will have a chance to pass in the Senate and if does pass, Obama will VETO IT and thus seal his own fate not being re-elected and then after the election we will hopefully get totally rid of it.

Yeah, I've received notice to contact congressmen and senators now to vote to repeal just to get who is for this tax on record. Firing up my Fax template now.

Direckshun
07-19-2012, 12:14 PM
http://libertystreeteconomics.newyorkfed.org/2012/07/just-released-housing-checkup-has-the-market-finally-bottomed-out.html

Just Released: Housing Checkup–Has the Market Finally Bottomed Out?
Joshua Abel, Richard Peach, and Joseph Tracy
July 17, 2012

In this post, we examine a number of important housing market “vital signs” that collectively help to indicate the health status of local markets at the county level. The post also serves as an introduction to a set of interactive maps, based on home price index data from CoreLogic, that we will regularly update on the New York Fed's website for readers interested in continuing to track the convalescence of the U.S. housing markets. The maps show the year-over-year change in home prices for nearly 1,200 counties through May and include a video sequence tracking these price changes since 2003.


Over the past few months, some national housing market indicators have begun to look a bit brighter. As of May, the CoreLogic national home price index had risen three months in a row. While still at a relatively low level, housing starts now have a clear upward trend. These developments have led some analysts to declare that, after five years of generally declining prices and activity, the housing market has finally bottomed out. While the national statistics are encouraging, whether or not the housing market has bottomed out is actually a much more difficult question to address for a couple of reasons. First, the United States is not a single housing market but rather a collection of numerous local housing markets. Second, the health of a local housing market is determined by a variety of indicators in addition to prices.

Price Change
The most important vital sign for a local housing market is the change in house prices. It is hard to imagine a recovery in a local housing market being under way when house prices are still falling in that market. Our first chart presents the distribution of year-over-year changes in house prices from 2003 to the present. To construct this chart, we compute for each month the year-over-year house price change for all 1,166 counties for which CoreLogic reports overall house price indexes. Those price changes are ranked from highest to lowest and then reported as percentiles based on this ranking. For example, the 5th percentile (P5) tracks the 58th-lowest county-level house price change in each month. Note that an individual county can be, and often is, in different percentiles over time.

http://libertystreeteconomics.typepad.com/.a/6a01348793456c970c017743564b4e970d-450wi

Several important features should be noted. First, the most recent data show that roughly half of the counties have measured house prices that are still declining, while half have stable-to-rising prices. In contrast, at the height of the housing market crash, more than 75 percent of the counties were experiencing falling house prices. Second, looking at the tails of the distribution, prices are rising for the 95th percentile county (P95) at a slightly faster rate than they are falling for the 5th percentile county. While the existence of stable-to-rising house prices in a county today does not guarantee that prices will continue to rise as the year progresses (look, for example, at early 2010), this finding does indicate that our most important sign of housing market recovery is evident in half of the reporting counties. A second point to note from the chart is the tremendous variation in house price changes across the country at each point in time, reinforcing the notion that the U.S. housing market is in fact a collection of smaller markets. At the height of the boom, the top 5 percent of counties experienced annual rates of house price appreciation that exceeded 25 percent while the lowest 5 percent of counties experienced essentially flat house prices. Similarly, during the most intense period of falling house prices, the 5 percent worst-performing counties recorded annual house price declines of 20 percent while the top 5 percent of counties were still experiencing house price increases.

The geography of this variation in house price changes for May is shown in the map below. Dynamic versions of this map at the national and regional levels are also available. While the “sand states” of Arizona, California, Florida, and Nevada experienced the largest swings in house prices during the housing boom and bust, there are counties in each of these states that are now reporting stable-to-rising house prices. Overall, however, house prices have stabilized to a greater degree in Arizona and Florida than in California and Nevada. In addition, the counties that are still experiencing year-over-year price declines of 10 percent or more are not concentrated in any particular part of the country. This is in contrast to the boom and bust years, when large increases (and then decreases) in home values were observed much more frequently near the coasts than in the middle of the country. (We will update the dynamic map each month as new house price data are released.)

http://libertystreeteconomics.typepad.com/.a/6a01348793456c970c0167687b675b970b-450wi

Transaction Volume
No diagnostic exam would be complete without measuring the patient’s pulse. The blood flow of a housing market is the transaction volume of its housing stock. Our next vital sign, then, is a measure of the repeat-sales transaction volume in each county. These are the same housing transactions that are used to construct the price changes. Repeat sales do not include new home sales, so this measure abstracts from what is happening to local housing supply. Rather, it is a measure of the degree of turnover in the existing housing stock. Given the vastly different sizes of the counties, we measure the repeat-sales transaction volume in each county relative to the average for that county from 2000 through 2002. To get a good reading on this transaction flow, we use a twelve-month moving count. Values above 1 indicate higher transaction volumes relative to 2000-2002, while values below 1 indicate lower volumes. The chart below indicates that more than three-quarters of counties are still experiencing reduced transaction flows relative to the flows in the 2000-2002 period. For the median county, the transaction volume today is less than 50 percent of the county’s baseline flow rate. However, it does appear that, for most counties, the decline in transaction flows has abated. This low pulse, however, indicates that most housing markets are still far from being normalized.

http://libertystreeteconomics.typepad.com/.a/6a01348793456c970c0167687b500a970b-450wi

Percentage of Transactions That Are Distressed
Our final vital sign for local housing market health is the percentage of transaction volume claimed by distressed sales. In our data, distressed sales include foreclosure sales, short-sales, and deeds-in-lieu. In the chart below, we show for each month the distressed-sale share of county repeat sales over the prior twelve months. Distressed sales are a constant presence in local housing markets. For example, even in the strong 2003 market, distressed sales accounted for around 5 percent of repeat sales in the median county. However, as the housing bust set in, the fraction of distressed sales rose steadily, and the median county now reports roughly 40 percent distressed sales. It appears that across the distribution, the distressed-sale share peaked in mid-2011 and has started to decline. Distressed sales may be akin to a patient having a fever—a defensive reaction that, while painful, speeds recovery—as unsustainable mortgages are withdrawn from the market. And the data may be indicating that the fever is beginning to break.

http://libertystreeteconomics.typepad.com/.a/6a01348793456c970c017743564c84970d-450wi

Overall Health Assessment
The stabilization of the housing market suggested by various national indicators is corroborated by looking at a number of indicators disaggregated to the county level. Importantly, the median county is now experiencing stable house prices on a year-over-year basis. Transaction volumes in most markets, while still far below normal, have steadied. Finally, the share of distressed sales, although still very high in many markets, appears to have peaked. If these trends continue, then local housing markets are making progress in their convalescence. However, our analysis indicates that most local housing markets still have a way to go to achieve a clean bill of health.

FD
07-19-2012, 12:20 PM
Thread bump reminded me, WSJ declared the housing bust "over" last week:

The U.S. Housing Bust is Over
The housing market has turned—at last.

The U.S. finally has moved beyond attention-grabbing predictions from housing "experts" that housing is bottoming. The numbers are now convincing.

Nearly seven years after the housing bubble burst, most indexes of house prices are bending up. "We finally saw some rising home prices," S&P's David Blitzer said a few weeks ago as he reported the first monthly increase in the slow-moving S&P/Case-Shiller house-price data after seven months of declines.

Nearly 10% more existing homes were sold in May than in the same month a year earlier, many purchased by investors who plan to rent them for now and sell them later, an important sign of an inflection point. In something of a surprise, the inventory of existing homes for sale has fallen close to the normal level of six months' worth despite all the foreclosed homes that lenders own. The fraction of homes that are vacant is at its lowest level since 2006.

The reduced inventory of unsold homes is key, says Mark Fleming, chief economist at CoreLogic, a housing data-analysis firm. For the past couple of years, house prices have risen in the spring and then slumped; the declining supply of houses for sale is reason to believe that won't happen again this year, he says.

Builders began work on 26% more single-family homes in May 2012 than the depressed levels of May 2011. The stock of unsold newly built homes is back to 2005 levels. In each of the past four quarters, housing construction has added to economic growth. In the first quarter, it accounted for 0.4 percentage points of the meager 1.9% growth rate.

"Even with the overall economy slowing," Wells Fargo Securities economists said, cautiously, in a note to clients, "the budding recovery in the housing market appears to be gradually gaining momentum."

Economists aren't always right, but on this at least they agree: A new Wall Street Journal survey of forecasters found 44 believe the housing market has reached its bottom; only three don't. (The full results of the Journal's July survey will be released at 2pm ET)

Housing is still far from healthy despite the Federal Reserve's efforts to resuscitate it by helping to push mortgage rates to extraordinary lows: 3.62% for a 30-year loan, according to Freddie Mac's latest survey. Single-family housing starts, though up, remain 60% below the 2002 pre-bubble pace. Americans' equity in homes is $2 trillion, or 25%, less than it was in 2002 and half what it was at the peak. More than one in every four mortgage borrowers still has a loan bigger than the value of the house, though rising home prices are reducing that fraction slowly.


Still, the upturn in housing is a milestone, a particularly welcome one amid a distressing dearth of jobs. For some time, housing has been one of the biggest causes of economic weakness. It has now—barely—moved to the plus side. "A little tail wind is a lot better than a headwind," says economist Chip Case, the "Case" in Case-Shiller.

From here on, housing is unlikely to drag the U.S. economy down further. It will instead reflect the strength or weakness of the overall economy: The more jobs, the more confident Americans are about keeping their jobs, the more they are willing to buy houses. "Manufacturing had led growth and construction had lagged," JPMorgan Chase economists said last week."Now the roles are reversed: Manufacturing growth has slowed as private construction comes to life."

Plenty could go wrong. The biggest threat is a large shadow inventory of unsold homes, homes which owners won't put on the market because they are underwater, homes that will be foreclosed eventually and homes owned by lenders. They have been trickling onto the market, slowed in part by government efforts to delay foreclosures; a flood could reverse the recent rise in prices. Or the still-dysfunctional mortgage market could get worse. Or overly zealous regulators or a post-election change in government policy could unsettle mortgage lenders or home buyers.

link (http://online.wsj.com/article/SB10001424052702303644004577520414196790098.html?)

FD
07-19-2012, 12:21 PM
Of course, its worth pointing out that the end of a "bust" is not the same as a recovery.

Direckshun
08-26-2012, 06:07 PM
WSJ, again, concludes the house market is picking up steam.

http://online.wsj.com/article/SB10000872396390444082904577607531788660796.html

Sales of New Homes Climb Sharply
August 23, 2012, 8:25 p.m. ET

Sales of newly built homes rose briskly in July, and inventory fell to the lowest level on record, suggesting the housing market is showing continued signs of recovery and that builders may need to ramp up construction in the coming months.

The Census Bureau said Thursday builders sold a seasonally adjusted annual rate of 372,000 homes in July, up 26% from the same month last year. Inventory of new homes available for sale fell to 142,000 units, the lowest level recorded since the government started tracking the figure in 1963… A separate report Thursday by the Federal Housing Finance Administration, which regulates mortgage companies Fannie Mae and Freddie Mac, showed prices of previously owned homes rose 1.8% in the second quarter from the first—the biggest quarterly jump in more than six years.

Both reports, combined with a recent spate of strong earnings reports from publicly traded home-building companies, are more evidence that the housing market is showing renewed signs of life.

Fairplay
08-26-2012, 06:16 PM
Beveridge Curve

BIG_DADDY
08-26-2012, 06:29 PM
Wait till interest rates go up, ouch

Ace Gunner
08-26-2012, 06:37 PM
We are experiencing a bump due to the I - generation reaching adulthood. It is only a small transient.

AustinChief
08-26-2012, 06:40 PM
#1 shouldn't have taken this long
#2 we still have at least one correction to come BUT I think it will only negate the growth not set us back.. so I agree that we are at bottom now, but we may have to stay here a little while longer

Bowser
08-26-2012, 06:43 PM
I have a CPA buddy who is completely convinced that this is going to get much, much worse before it gets better. He doesn't buy into the spurts of life shown recently. Couldn't tell you with detail as to why, that's just what he thinks.

AustinChief
08-26-2012, 06:50 PM
I have a CPA buddy who is completely convinced that this is going to get much, much worse before it gets better. He doesn't buy into the spurts of life shown recently. Couldn't tell you with detail as to why, that's just what he thinks.

I am torn because I think he is correct but only half so. I think there will be some serious movement UP that will offset the "much worse" and result in a net zero. My guess is that we stay fairly stagnant or inching upward but won't see anything significantly positive until at least next Spring/Summer.

BIG_DADDY
08-26-2012, 06:52 PM
I have a CPA buddy who is completely convinced that this is going to get much, much worse before it gets better. He doesn't buy into the spurts of life shown recently. Couldn't tell you with detail as to why, that's just what he thinks.

Because interest rates have to rise. I just told you.

Bowser
08-26-2012, 06:54 PM
I am torn because I think he is correct but only half so. I think there will be some serious movement UP that will offset the "much worse" and result in a net zero. My guess is that we stay fairly stagnant or inching upward but won't see anything significantly positive until at least next Spring/Summer.

To be fair, he's basing his projections on the election....

Romney wins, vast and somewhat immediate relief/improvement.

Obama wins, straight to the sewer.

He's a pretty sharp guy when it comes to the economy. I've come to take what he says when talking about such issues pretty seriously. Time will tell.

KC native
08-26-2012, 09:33 PM
#1 shouldn't have taken this long
#2 we still have at least one correction to come BUT I think it will only negate the growth not set us back.. so I agree that we are at bottom now, but we may have to stay here a little while longer

Why shouldn't it have taken this long? I'd like to see your well versed opinion here as well.

KC native
08-26-2012, 09:38 PM
To be fair, he's basing his projections on the election....

Romney wins, vast and somewhat immediate relief/improvement.

Obama wins, straight to the sewer.

He's a pretty sharp guy when it comes to the economy. I've come to take what he says when talking about such issues pretty seriously. Time will tell.

I'm sorry but that is terrible reasoning.

There is a tremendous inventory overhang. We won't see any significant price increases for a long time but we also won't see price declines.

Private equity is raising money in a hurry to buy large tracts of homes from banks for nice prices and the PE firms intend to hold onto the properties and lease them out.

The banks are in much better capital positions now, so they don't have to rush on foreclosures.

Who ever the president is will have no effect on this.

KC native
08-26-2012, 09:39 PM
Wait till interest rates go up, ouch

And when do you expect this? Right now the world is content to loan money to the government at extremely low yields. What's going to change that dynamic within the next couple of years?

BIG_DADDY
08-26-2012, 10:17 PM
And when do you expect this? Right now the world is content to loan money to the government at extremely low yields. What's going to change that dynamic within the next couple of years?

Well if you can tell me exactly when they will go up you should make a lot of money however with our debt and spending out of control and printing presses running non-stop it can't be that far away. Short term housing may go up, I'll give you that.

The markets usually give you a second chance to get out but if you have the right property at a very low fixed rate you can always pay it off with cheaper dollars so there is the trade off. When interest rates rise though look out.

AustinChief
08-26-2012, 11:13 PM
Why shouldn't it have taken this long? I'd like to see your well versed opinion here as well.

Neil Barofsky, the former Special Inspector General for TARP, writes that it was clear by late 2009 that the signature effort to boost the housing market, a mortgage modification plan called HAMP with $50 billion in available funding, would be a failure. Yet the administration has neither fully abandoned the effort nor tried to do it the right way. Only this past month, a similar plan to offer debt relief to homeowners through Fannie Mae and Freddie Mac was rebuffed by an independent regulator. For those who are counting, that’s three-plus years of uncertainty about the assistance that would be given to homeowners. As Barofsky writes,

It may be a fair debate whether we should have gone with the “all in” approach that I and others have advocated or the “do nothing and let the market find its natural bottom” approach advocated by many conservatives. There should, though, be little question that the chosen policy – a “foam the runway” approach that assisted the banks and only a fraction of the homeowners that could have benefited – has been a failure and has left us stuck in economic mediocrity.

Nor are homeowner assistance efforts the only source of uncertainty in the housing sector. E21’s Christopher Papagianis argues that “there is perhaps no other major industry that faces more micro-policy uncertainty than housing today,” because of pending regulations regarding servicing and underwriting.
bam. but please... tell everyone here how you know more then Barofsky.

KC native
08-27-2012, 09:24 AM
bam. but please... tell everyone here how you know more then Barofsky.

No, I just watned to see if you would cite some obscure papers and misinterpret them again.

Comrade Crapski
09-07-2012, 01:21 AM
Took us long enough. Jesus.

http://www.nytimes.com/2012/06/28/business/economy/new-indications-housing-recovery-is-under-way.html?_r=2

After Years of False Hopes, Signs of a Turn in Housing
By BINYAMIN APPELBAUM
Published: June 27, 2012



Another good call, Ereckshun.

LMAO

Owners Lose Possessions After Home Near Twentynine Palms Is Mistakenly Foreclosed

TWENTYNINE PALMS (CBSLA.com) — The owners of a modest home near Twentynine Palms lost their cherished possessions after a bank mistakenly foreclosed their residence.

A crew broke into Alvin and Pat Tjosaas’ desert home and took everything after being directed by Wells Fargo to secure the structure.

The couple, however, didn’t have a mortgage on the home.

Alvin said the deputy sheriff said, “Good news, we know who took (your possessions)…Wells Fargo. Bad news, your stuff is all gone.”

All the married couple has now are three generations of memories.



Alvin, a retired mason, built the home with his father when he was a teenager.

“I know every inch, every rock…my mom mixed all the cement by hand,” he said.

Alvin and his wife would later bring their six children to their desert oasis.

“My little kids (would) come out here and their dresses were the same color as the wildflowers,” said Alvin.

A spokesman for Wells Fargo released a statement apologizing to the couple.

“We are deeply sorry for the very personal losses the Tjosaas family suffered as a result of their home being mistakenly secured,” said Alfredo Padilla. “We are moving quickly to reach out to the family to resolve this unfortunate situation in an attempt to right this wrong.”

Alvin and Pat remain distraught.

“When you put your heart into something…it makes me real sad. I’m just glad I have my sweetheart. We’ve been together a long time,” said Alvin.

http://losangeles.cbslocal.com/2012/09/05/owners-lose-possessions-after-home-near-twentynine-palms-is-mistakenly-foreclosed/

DaneMcCloud
09-07-2012, 01:25 AM
Another good call, Ereckshun.

LMAO



First off, this has nothing to do with his post.

Secondly, how is it funny that a home was emptied by Wells Fargo by accident?

You're a worthless, dumb cunt.

BWillie
09-07-2012, 01:52 AM
They should just stop building new houses for like 10 years. That would do the trick.

DaneMcCloud
09-07-2012, 01:53 AM
They should just stop building new houses for like 10 years. That would do the trick.

LMAO

LOCOChief
09-07-2012, 10:20 AM
Nobody's building anyway. Go try to get a construction loan.

mnchiefsguy
09-07-2012, 11:44 AM
Another good call, Ereckshun.

LMAO

Owners Lose Possessions After Home Near Twentynine Palms Is Mistakenly Foreclosed

TWENTYNINE PALMS (CBSLA.com) — The owners of a modest home near Twentynine Palms lost their cherished possessions after a bank mistakenly foreclosed their residence.

A crew broke into Alvin and Pat Tjosaas’ desert home and took everything after being directed by Wells Fargo to secure the structure.

The couple, however, didn’t have a mortgage on the home.

Alvin said the deputy sheriff said, “Good news, we know who took (your possessions)…Wells Fargo. Bad news, your stuff is all gone.”

All the married couple has now are three generations of memories.



Alvin, a retired mason, built the home with his father when he was a teenager.

“I know every inch, every rock…my mom mixed all the cement by hand,” he said.

Alvin and his wife would later bring their six children to their desert oasis.

“My little kids (would) come out here and their dresses were the same color as the wildflowers,” said Alvin.

A spokesman for Wells Fargo released a statement apologizing to the couple.

“We are deeply sorry for the very personal losses the Tjosaas family suffered as a result of their home being mistakenly secured,” said Alfredo Padilla. “We are moving quickly to reach out to the family to resolve this unfortunate situation in an attempt to right this wrong.”

Alvin and Pat remain distraught.

“When you put your heart into something…it makes me real sad. I’m just glad I have my sweetheart. We’ve been together a long time,” said Alvin.

http://losangeles.cbslocal.com/2012/09/05/owners-lose-possessions-after-home-near-twentynine-palms-is-mistakenly-foreclosed/

Wells Fargo seems to have a lot of trouble getting their shit straight. This is the third or fourth story I have seen this year of them "foreclosing" on a home that they don't have a mortgage for. Sounds like they need to replace some employees and get some folks who can read and figure out what mortgages they do have.

Brock
09-07-2012, 11:45 AM
Wells Fargo seems to have a lot of trouble getting their shit straight. This is the third or fourth story I have seen this year of them "foreclosing" on a home that they don't have a mortgage for. Sounds like they need to replace some employees and get some folks who can read and figure out what mortgages they do have.

Maybe some prosecutions and prison time, along with multiplied reparations is what's called for.

DaneMcCloud
09-07-2012, 11:54 AM
Nobody's building anyway. Go try to get a construction loan.

There's plenty of building in Johnson County, at least as of this time last year. Lots of building in my hood as well.

mnchiefsguy
09-07-2012, 11:56 AM
Maybe some prosecutions and prison time, along with multiplied reparations is what's called for.

Sounds good to me. They essentially destroyed these people's homes, they need to be held accountable for that.

KC native
09-07-2012, 12:02 PM
Wells Fargo seems to have a lot of trouble getting their shit straight. This is the third or fourth story I have seen this year of them "foreclosing" on a home that they don't have a mortgage for. Sounds like they need to replace some employees and get some folks who can read and figure out what mortgages they do have.

This is happening to all the banks. MERS and the whole fraudclosure thing have screwed up titles bad and it will take years to sort it out. People should be going to jail for this shit.

DaneMcCloud
09-07-2012, 12:03 PM
Sounds good to me. They essentially destroyed these people's homes, they need to be held accountable for that.

But, but, but Shtsprayer thinks it's funny!

Fucking tool.

Comrade Crapski
09-09-2012, 07:41 AM
http://news.yahoo.com/wells-fargo-mistakenly-cleans-retired-couples-home-twice-192508841--abc-news-topstories.html

you can't make this stuff up.

Direckshun
09-20-2012, 06:36 PM
http://www.businessweek.com/news/2012-09-19/sales-of-u-dot-s-dot-existing-homes-climb-to-a-two-year-high

Sales of U.S. Existing Homes Climb to a Two-Year High
By Alex Kowalski and Michelle Jamrisko
September 19, 2012

Sales of previously owned homes and work on single-family projects climbed in August to the highest levels in two years, signaling the residential real-estate market is contributing to the U.S. economic recovery.

Purchases of existing houses increased 7.8 percent to a 4.82 million annual rate, the most since May 2010, figures from the National Association of Realtors showed today in Washington. The median forecast of 78 economists surveyed by Bloomberg called for sales to increase to a 4.56 million pace. Commerce Department data showed builders began work on the most one- family homes since April 2010.

Record-low mortgage rates, more affordable properties and limited supply of new homes are driving orders at builders such as Toll Brothers Inc. (TOL) and Hovnanian Enterprises Inc. (HOV) In addition, sales of distressed properties are starting to account for a smaller share of the market, leading to gains in home values that are laying the groundwork for a sustained economic expansion as household sentiment and finances improve.

“The nascent housing recovery has deepened,” said Ellen Zentner, a senior U.S. economist at Nomura Securities International Inc. in New York, who projected existing-home sales would climb to a 4.85 million rate. “Ultimately, this improvement will lead to a rise in residential wealth, which tends to lift consumer confidence and spending.”

The Standard & Poor’s Supercomposite Homebuilders Index (S15HOME) rose 3.1 percent at the close in New York, while the S&P 500 gained 0.1 percent. The pickup in housing helps explain why the index of builder shares, including PulteGroup Inc. and D.R. Horton Inc., has surged 83 percent this year, outpacing a 16 percent gain in the broader S&P 500.

Builder Shares
Construction of single-family houses climbed 5.5 percent to a 535,000 rate, the fastest since April 2010, after a 4.5 percent decrease, the Commerce Department said today in Washington. Permits for the building of one-family homes increased 0.2 percent to a 512,000 annual pace, the highest since March 2010.

Beginning construction of all homes rose 2.3 percent to a 750,000 annual rate in August, less than forecast and restrained by a decrease in starts of multifamily dwellings that are volatile month to month.

Work on apartments and other multifamily homes dropped 4.9 percent to an annual rate of 215,000.

Beyond Builders
The housing rebound extends beyond builders -- from home- furnishings retailers like Lowe’s Cos. and Home Depot Inc. to building materials supplies such as gypsum wallboard-maker USG Corp.

Existing-home sales have improved after reaching a low of a 3.39 million annual rate in July 2010. In the buildup to the subprime lending collapse and recession, purchases reached a peak of 7.25 million in September 2005.

Estimates in the Bloomberg survey for August ranged from 4.45 million to 4.85 million. Compared with a year earlier, purchases increased 11 percent in August, today’s report showed.

The median price of an existing home climbed 9.5 percent to $187,400 from $171,200 in August 2011. Prices have increased in each of the past six months on a year-to-year basis, the best performance since early 2006.

The increase in prices reflects both a reduction in distressed sales and a “genuine” appreciation in property values, Lawrence Yun, NAR chief economist, said in a news conference today as the figures were released.

Home Prices

The gain in home values may induce potential buyers and sellers to enter the market. Prices last quarter posted their first year-over-year gain since 2007, according to Zillow Inc., the Seattle-based operator of the largest real-estate information website.

Higher real estate values also helped more than 1.3 million homeowners regain equity in the first six months of 2012, according to CoreLogic. About 22.3 percent of homeowners with a mortgage owed more than their homes were worth at the end of June, down from 23.7 percent three months earlier.

Even with pricier real estate, homes remain affordable. The average rate on a 30-year fixed mortgage was at 3.55 percent in the week ended Sept. 13, near 3.49 percent, the lowest since records began in 1971, Freddie Mac data show.

The Federal Reserve has also committed to purchasing $40 billion of mortgage debt a month to lower borrowing costs, helping the housing market that Chairman Ben S. Bernanke called “one of the missing pistons in the engine.”

Fed’s Bernanke

“Our mortgage-backed securities purchases ought to drive down mortgage rates and put downward pressure on mortgage rates and create more demand for homes and more refinancing,” Bernanke said in a Sept. 13 press conference after the central bank announced the debt-buying plans.

Homebuilders such as Red Bank, New Jersey-based Hovnanian Enterprises Inc. and Toll Brothers are seeing increased demand.

“Due to the industry’s rebound and our increase in sales pace, our communities are selling out more quickly and literally caught us without being able to replenish as fast as we’d like,” Ara K. Hovnanian, the company’s chairman, president and chief executive officer, said on a Sept. 6 earnings call.

Toll Brothers, the largest U.S. luxury-home builder, reported a better-than-estimated profit and an increase in revenue for its third quarter ended July 31. The average price of the homes that the Horsham, Pennsylvania-based company delivered in the quarter climbed to $576,000 from $557,000 in the previous three months.

“The housing recovery is being driven by pent-up demand, very low interest rates and attractively priced homes,” Chief Executive Officer Douglas Yearley Jr. said on an Aug. 22 conference call with investors. “With an industry wide shortage of inventory in many markets, we are enjoying some pricing power.”

Direckshun
09-20-2012, 06:37 PM
Wall Street Journal (http://online.wsj.com/article/SB10000872396390444620104578005992859391394.html):

Construction of single-family homes, which made up 71% of housing starts last month, grew 5.5% in August to a rate of 535,000 units—the highest level since April 2010, when the market was boosted by federal tax credits. Single-family construction was up 27% from a year earlier.

Direckshun
09-20-2012, 06:40 PM
http://blogs.reuters.com/felix-salmon/2012/09/19/counterparties-your-very-tentative-housing-recovery/

Counterparties: Your very tentative housing recovery
By Ryan McCarthy
September 19, 2012

Here’s the most recent round of housing data — including housing starts (http://blogs.wsj.com/marketbeat/2012/09/18/housing-recovery-more-reasons-to-be-bullish/?mod=WSJBlog&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fmarketbeat%2Ffeed+%28WSJ.com%3A+MarketBeat+Blog%29&utm_content=Google+Reader), existing home sales (http://www.census.gov/construction/nrc/pdf/newresconst.pdf), and homebuilder confidence (http://www.nahb.org/reference_list.aspx?sectionID=134) — in three quotes:

“Housing is clearly in recovery mode (http://www.reuters.com/article/2012/09/19/us-usa-economy-housing-idUSBRE88I0OR20120919).”
“The U.S. housing recovery is for real (http://online.wsj.com/article/SB10000872396390444620104578005992859391394.html?mod=WSJ_hpp_LEFTTopStories).”
“The nascent housing recovery has deepened (http://www.bloomberg.com/news/2012-09-19/sales-of-u-s-existing-homes-climb-to-a-two-year-high.html).”

Which isn’t to say today’s numbers are going to make your house suddenly jump in value. The Capital Spectator (http://www.capitalspectator.com/archives/2012/09/the_housing_rec_1.html) says the housing recovery is “perhaps downshifting a bit” and notes that newly issued building permits fell by 1% over the previous month. Bill McBride at Calculated Risk (http://www.calculatedriskblog.com/2012/09/existing-home-sales-inventory-and-nsa.html) calls the existing home sales number “decent”, not because of housing starts but because of the market’s inventory dynamic.

Why should you care about the various measures of housing inventory? For one, they’re good ways of measuring how we’re recovering from the foreclosure crisis. Barclays recently estimated that the market’s “shadow inventory (http://blogs.wsj.com/developments/2012/08/14/shadow-inventory-its-not-as-scary-as-it-looks/)” — homes that are at or near foreclosure — includes some 3.25 million mortgages which are either in foreclosure or at least three months in default. McBride expects reluctant sellers to soon start returning to the market: “this new inventory will probably limit price increases.”

Peter Eavis (http://dealbook.nytimes.com/2012/09/18/an-enigma-in-the-mortgage-market-that-elevates-rates/?hpw), following up on a piece (http://dealbook.nytimes.com/2012/08/08/with-rate-twist-banks-increase-mortgage-profit/) he had last month, points to another puzzling dynamic that could hold the housing recovery back. “Pricing in the mortgage market” Eavis writes, “appears to be have gotten stuck.” The spread between mortgage rates and mortgage bond yields, a rough shorthand for mortgage revenue, has jumped in the last year. Even as interest rates are at or near historic lows, Eavis writes, “banks aren’t fully passing on the low rates in the bond market to borrowers. Instead, they are taking bigger gains, and increasing the size of their cut.”

Direckshun
09-25-2012, 06:17 PM
http://news.yahoo.com/home-prices-consumer-confidence-gain-145737113--business.html;_ylt=AlFuRtKDihv7o2XypD7nIhOs0NUE;_ylu=X3oDMTNrMjhyZ2RyBG1pdANNZWdhdHJvbiBGUARwa2cDMWF kNjQ1MzktZDljNy0zNjNmLTg5YTgtYzFmZTI2NTUxZGM1BHBvcwMyBHNlYwNtZWdhdHJvbgR2ZXIDY2IwOTIxODEtMDc0NC0xMWU yLThmYjMtODA5ZWRiMjVlOGE5;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lB HB0A3NlY3Rpb25z;_ylv=3

Home prices rise for sixth month, a sign of recovery
By Leah Schnurr
Reuters – 5 hrs ago

NEW YORK (Reuters) - U.S. home prices rose for a sixth straight month in July in the latest sign of a sustainable housing market recovery, while a jump in consumer confidence this month offered a harbinger that Americans are ready to loosen their spending.

Six years after its collapse, economists believe the housing market has turned a corner.

Two separate reports on Tuesday showed that home prices rose in July, though the gains were not as strong as the previous month. That follows recent data that home resales and groundbreaking on new properties rose in August, while business sentiment among homebuilders hit a more than six-year high this month.

The S&P/Case Shiller composite index of 20 metropolitan areas rose 0.4 percent in July on a seasonally adjusted basis. Economists had expected a gain of 0.9 percent, which would have matched June's advance. Case Shiller is one of the most closely watched barometers of the U.S. housing market.

On a non-adjusted basis, prices were up 1.6 percent.

The gain in house prices supports the view that "even with the broader economic recovery struggling to gain traction, the housing recovery is sustainable," wrote Paul Diggle, property economist at Capital Economics.

Housing has regained its footing at the same time as the broader economic recovery has lost traction. The economy grew at a 1.7 percent annual rate in the second quarter, and economists say it is not likely to fare much better in the current quarter.

Larry Kantor, head of research at Barclays Capital, said housing has the potential to give a stronger boost to the U.S. economy in 2013 as steadily rising prices reassure Americans that the housing crash is past.

"We'd not previously had a decline in house prices since the 1940s so we don't know for sure, but six months of price rises may deter people from renting," he said.

Earlier this month the Federal Reserve unleashed an aggressive stimulus program in which it will buy $40 billion in mortgage-backed securities a month until the job market sees sustained improvement.

The Fed's announcement pushed mortgage interest rates to new record lows last week, according to data from mortgage finance provider Freddie Mac.

Still, housing faces a number of hurdles, including tight lending standards for mortgages, a large number of underwater homeowners, and a large number of foreclosures still in the pipeline.

OUT OF THE WOODS

U.S. stocks were modestly higher in the early afternoon, with housing shares up 0.4 percent. The housing index is up more than 14 percent for September so far.

The day's data helped drive down prices of Treasuries, a traditional haven from risk, as it reduced worries about slowing global growth.

Also on Tuesday, consumer confidence climbed in September to the highest level in seven months as Americans were more optimistic about the job market and income prospects.

The Conference Board, an industry group, said its index of consumer attitudes rose to a reading of 70.3 from an upwardly revised 61.3 in August. It was the highest level since February and topped economists' expectations for a reading of 63, according to a Reuters poll.

With consumer spending accounting for two-thirds of economic activity, analysts are keen to see the upbeat attitudes translate into more buying.

"It does bode well for spending down the road," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

Cheerier consumers, combined with the recent rise in equities markets, could help President Barack Obama's reelection chances, with campaigning on both sides focusing on the health of the economy.

The housing market is considered a key sector of the economy.

"Housing is out of the woods and it should be making a contribution to the overall economy going forward," David Blitzer, chairman of the index committee at Standard & Poor's, told Reuters Insider.

Compared with a year ago, prices in the 20 cities were up 1.2 percent, the biggest gain since August 2010, according to the S&P/Case Shiller index.

Prices were lower than a year ago in only four cities, with Atlanta faring the worst, down nearly 10 percent. Hard-hit Phoenix continued to rebound, with a gain of 16.6 percent.

Separately, the U.S. Federal Housing Finance Agency home price index showed prices rose 0.2 percent in July compared with a 0.6 percent rise in June.

Analysts cautioned that home prices could decelerate somewhat through the rest of the year as the traditional summertime buying boost wears off.

Economists expect prices will rise 1 percent this year and 2.5 percent next year, according to a Reuters poll done at the beginning of September before the Fed announced its latest quantitative easing program.

In the consumer confidence data, the Conference Board's expectations index climbed to 83.7 from 71.1, while the present situation index gained to 50.2 from 46.5.

Consumers were more optimistic on both the current and short-term outlook for the labor market and had a more favorable view on their income prospects in the next six months.

Consumers also felt better about price increases with expectations for inflation in the coming 12 months down to 5.8 percent from 6 percent.

HonestChieffan
09-25-2012, 06:32 PM
Cheap housing sold first. Higher priced homes are left and still not selling. You will grasp at any straw. Sad.

Go Obama

J Diddy
09-25-2012, 06:40 PM
Cheap housing sold first. Higher priced homes are left and still not selling. You will grasp at any straw. Sad.

Go Obama

and that and the price of tea in China have what to with what?

This is about 6 months of rising house prices. Not about what is sold, not to mention, where do you even pull that quasi-fact from?

bevischief
09-26-2012, 11:44 AM
http://www.inforum.com/event/article/id/375395/

Housing needs boom as projections show ND population will break 800,000 by end of decade
FARGO - North Dakota’s population will break 800,000 by the end of the decade, according to state projections released Monday – and the state will need thousands of new housing units per year to meet burgeoning demand.

By: Marino Eccher, INFORUM

Homes seemingly stack up Monday along the back side of the 4700 block of 50th Avenue South in Fargo. Michael Vosburg / Forum Photo Editor
Matt Zeis helps build a home


ND Gov outlines housing plan to deal with growth

FARGO - North Dakota’s population will break 800,000 by the end of the decade, according to state projections released Monday – and the state will need thousands of new housing units per year to meet burgeoning demand.

The projections, part of a report on the state’s housing needs, put the state’s population at 806,541 by 2020. That would represent a 20 percent increase over the 2010 population.

The growth won’t be uniform. The state’s oil-producing regions are expected to more than double in population, while 21 rural counties shrink as the state becomes more urban.

The report credits the state’s economy for driving the growth, with the energy industry leading the way. The demand for workers in the state’s oil industry is expected to peak at about 130,000 by 2020, up from 78,000 in 2010.

Accommodating those workers and other newcomers will require adding as many as 6,000 units of housing per year.

The report was produced by NDSU’s Center for Social Research, and prepared for the North Dakota Housing Finance Agency.

The biggest needs will be in Oil Patch areas already slammed by housing shortages. Williston alone will need 8,000 new housing units this decade as it swells to a projected 31,000 residents.

Minot, on the fringe of the boom, is expected to grow to more than 51,000 residents.

In eastern North Dakota, Fargo’s population is expected to grow by 13 percent to 121,000 by 2020. The city will need about 11,000 new housing units by then, the report said.

West Fargo is projected to reach nearly 30,000 residents by the decade’s end, a 16 percent growth rate.

Grand Forks is expected to grow by a more modest 8 percent to 57,000 residents.

Statewide, about half of new housing units will be needed by households earning 80 percent or less than the median family income, which is about $61,500 statewide.

And the state’s rapidly growing 65-and-older population “will create increased pressure for elderly housing, much of which will be for single elderly and those with low income,” the report said.

North Dakota population by the numbers

806,541: North Dakota’s projected population by 2020, a 20 percent increase over 2010.

130,000: Number of oil sector workers expected by 2020, when the industry is projected to stabilize. That’s up from 78,000 in 2010.

6,000: The number of new housing units the state will need to add every year for the next 15 years to meet projected demand.

Half of those units need to be affordable by households earning 80 percent or less of the median income for their areas.

10,839: The number of housing units Fargo will need to add between 2010 and 2020 to accommodate projected growth.

144 percent: The population growth expected for McKenzie County between 2010 and 2020, the fastest projected in the state.

13 percent: The growth rate expected for Cass County.

21: The number of counties expected to shrink over the next decade as the state becomes more urban.

Direckshun
10-15-2012, 09:39 AM
http://pragcap.com/wp-content/uploads/2012/10/DR2.png

Direckshun
10-15-2012, 09:44 AM
http://pragcap.com/3-things-i-agree-with-david-rosenberg-about

3 Things I Agree With David Rosenberg About
Cullen Roche
10/15/2012 1:36 AM

I liked this presentation (http://www.businessinsider.com/david-rosenberg-navigating-the-new-normal-2012-10?op=1) by David Rosenberg which comes courtesy of one of the hardest working guys in journalism, Joe Weisenthal. I’ve disagreed with Rosenberg on the recession call in the USA for a long time now, but we’re on the same page about a lot of the macro trends. Here are three pertinent ones that are worth highlighting from the presentation:

Chart 1 – One of the weakest recoveries in 50 years - Rosenberg and I both agree on the de-leveraging effect from the balance sheet recession and its extremely depressing effect on GDP. This is one of the most anemic recessions in the post-war era. Not surprisingly, it’s the only one to occur during a de-leveraging so that shouldn’t be terribly surprising.

http://pragcap.com/wp-content/uploads/2012/10/dr1.png

Chart 2 – Putting the housing recovery in perspective – I am substantially more bullish on housing than I was several years ago, but I am trying to keep things in perspective also. The housing “recovery” is pathetic. This chart summarizes the recency effect that has a lot of people saying we’re off to the races here….

http://pragcap.com/wp-content/uploads/2012/10/DR2.png

Corporate profit trends are disconcerting – As I detailed earlier this year, corporate profits are likely to weaken and could potentially tip into a profits recession. Profit margins, weak global growth and the fiscal cliff are all big risks here. The deficit has been driving corporate profits to a huge degree in recent years so keep a close eye on that fiscal cliff situation. It will be as important as it’s been trumped up to be.

http://pragcap.com/wp-content/uploads/2012/10/dr3.png

Comrade Crapski
10-15-2012, 10:45 PM
Direkshun is alot like Hitler in the bunker moving little pieces around on the board as if any of it matters.

Direckshun
10-16-2012, 10:28 AM
http://www.calculatedriskblog.com/2012/10/the-housing-bottom-and-unemployment-rate.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29&utm_content=Google+Reader

The Housing Bottom and the Unemployment Rate
by Bill McBride
10/15/2012 04:47:00 PM

Early this year when I wrote The Housing Bottom is Here (http://www.calculatedriskblog.com/2012/02/housing-bottom-is-here.html) and Housing: The Two Bottoms (http://www.calculatedriskblog.com/2012/02/housing-two-bottoms.html), I pointed out there are usually two bottoms for housing: the first for new home sales, housing starts and residential investment, and the second bottom is for house prices.

For the bottom in activity, I presented a graph of Single family housing starts, New Home Sales, and Residential Investment (RI) as a percent of GDP.

When I posted that graph, the bottom wasn't obvious to everyone. Now it is, and here is another update to that graph (and a repeat of some analysis).

http://1.bp.blogspot.com/-LClsC1H7tpM/UHx07efBUNI/AAAAAAAAS5U/4eNeSOAvfXI/s1600/PeaksTroughs.jpg

The arrows point to some of the earlier peaks and troughs for these three measures.

The purpose of this graph is to show that these three indicators generally reach peaks and troughs together. Note that Residential Investment is quarterly and single-family starts and new home sales are monthly.

For the current housing bust, the bottom was spread over a few years from 2009 into 2011. This was a long flat bottom - something a number of us predicted given the overhang of existing vacant housing units.

Housing plays a key role for employment too. Here is an update to a graph I've been posting for a few years. This graph shows single family housing starts (through August) and the unemployment rate (inverted) also through September. Note: there are many other factors impacting unemployment, but housing is a key sector.

http://2.bp.blogspot.com/-GDOO_6vBp34/UHx064cI2eI/AAAAAAAAS5I/CDu-Gsj7pgA/s1600/StartsUnemploySept2012.jpg

You can see both the correlation and the lag. The lag is usually about 12 to 18 months, with peak correlation at a lag of 16 months for single unit starts. The 2001 recession was a business investment led recession, and the pattern didn't hold.

Housing starts (blue) increased a little in 2009 with the homebuyer tax credit - and then declined again - but mostly starts moved sideways for two and a half years and only started increasing last year. This was one of the reasons the unemployment rate remained elevated.

Usually near the end of a recession, residential investment (RI) picks up as the Fed lowers interest rates. This leads to job creation and also additional household formation - and that leads to even more demand for housing units - and more jobs, and more households - a virtuous cycle that usually helps the economy recover.

However, following the recent recession with the huge overhang of existing vacant housing units, this key sector didn't participate. This time the unemployment rate started falling before housing starts picked up. Going forward I expect housing activity to increase and help push down the unemployment rate. Unfortunately I expect the housing recovery to be somewhat sluggish.

Direckshun
10-17-2012, 04:54 PM
Housing just beat expectations.

http://www.calculatedriskblog.com/2012/10/housing-starts-increased-sharply-to-872.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29&utm_content=Google+Reader

Housing Starts increased sharply to 872 thousand SAAR in September
by Bill McBride
10/17/2012 08:30:00 AM

From the Census Bureau: Permits, Starts and Completions (http://www.census.gov/construction/nrc/pdf/newresconst.pdf)

Housing Starts:
Privately-owned housing starts in September were at a seasonally adjusted annual rate of 872,000. This is 15.0 percent above the revised August estimate of 758,000 and is 34.8 percent above the September 2011 rate of 647,000.

Single-family housing starts in September were at a rate of 603,000; this is 11.0 percent above the revised August figure of 543,000.

Building Permits:
Privately-owned housing units authorized by building permits in September were at a seasonally adjusted annual rate of 894,000. This is 11.6 percent above the revised August rate of 801,000 and is 45.1 percent above the September 2011 estimate of 616,000.

Single-family authorizations in September were at a rate of 545,000; this is 6.7 percent above the revised August figure of 511,000.

The first graph shows single and multi-family housing starts for the last several years. Starts are slowing increasing.

http://2.bp.blogspot.com/-GbiQvouW10M/UH6lwS0IB8I/AAAAAAAATFE/6C1tXlpn0ww/s320/StartsShortSept2012.jpg


Total housing starts were at 872 thousand (SAAR) in September, up 15.0% from the revised August rate of 758 thousand (SAAR). Note that August was revised up from 750 thousand.

Single-family starts increased 11.0 to 603 thousand in September.

The second graph shows total and single unit starts since 1968.

http://2.bp.blogspot.com/-hkHmZJ3_KUY/UH6lxZhwlxI/AAAAAAAATFQ/WncOmOxyUZ8/s320/StartsSept2012.jpg


This shows the huge collapse following the housing bubble, and that total housing starts have been increasing lately after moving sideways for about two years and a half years.

Total starts are up about 80% from the bottom start rate, and single family starts are up 70% from the low.

This was way above expectations of 765 thousand starts in September. This was partially because of the volatile multi-family sector, but single family starts were up sharply too - and above 600 thousand SAAR for the first time since 2008. Right now starts are on pace to be up about 25% from 2011.

Direckshun
10-17-2012, 04:55 PM
http://www.crgraphs.com/2011/10/housing-graphs.html

BucEyedPea
10-17-2012, 05:01 PM
Bubble, Bubble; Toil and Trouble


another bubble on the way....

Comrade Crapski
10-23-2012, 08:04 AM
Took us long enough. Jesus.

This is what happens when you vote for communists...

Housing picture: 65 percent of markets worse off than before the bust

By Brady Dennis, Tuesday, October 23, 2:17 AM
The Washington Post


The past four years have hardly been a joyride for many of the nation’s homeowners.

But the economic suffering brought on by the housing bust has hit communities across America in vastly different ways, with some markets still ailing and others healthy, according to a new analysis released Monday by the research firm RealtyTrac.

The economic jolt from the housing bust has hit communities across the country in vastly different ways.

The company looked at how housing markets in 919 counties across the country have fared since 2008, based on such factors as changes in home prices, unemployment rates and foreclosure activity. The result: 65 percent of those communities were worse off than they were in 2008.

“A house often represents a homeowner’s biggest asset — or liability,” the RealtyTrac report stated. “Unfortunately many houses fall into the liability column for U.S. homeowners.”

The list of worse-off communities include places such as Cook County in Illinois (home to Chicago), where home prices have fallen nearly 20 percent, unemployment has risen and the inventory of foreclosures has soared. Areas around Atlanta, Tucson and Salt Late City also have suffered overall declines during the past four years.

Not surprisingly, the Washington area has fared better than most places. Specifically, the RealtyTrac report cites Fairfax County as a bright spot because house prices have increases slightly, while foreclosure starts and foreclosure inventories have fallen.

The report shows that counties where home prices have declined from four years ago have seen an average price drop of $69,000. Counties where prices have risen have seen an average price increase of $49,000.

In addition, RealtyTrac noted that counties won by Republican nominee John McCain in 2008 have fared slightly better than those won by President Obama — 29 percent of the GOP-voting counties studied showed increases in home prices during the past four years, compared with 26 percent of Democratic-voting counties.

While Monday’s RealtyTrac report offers another interesting glimpse at how different housing markets have fared in recent years, it’s unlikely by itself to provide much insight how housing issues will affect the outcome of the coming election.

Housing represents a significant part of the economy — not to mention one of the main drags on growth in recent years — and the most tangible, personal investment for many Americans. But house prices and foreclosure trends are simply one factor in a much broader economic picture that voters are likely consider when placing their ballots on Nov. 6. Tax reform, energy policy, approaches to national debt — all are prominent campaign issues.

In addition, whatever the data says about the housing market over the past four years, what actually matters to the voters might come down to a question of perspective and momentum.

On the one hand, when Obama was elected in 2008, the housing boom was already becoming the biggest housing bust in generations. On the other, critic’s say the administration’s efforts during Obama’s first term haven’t been nearly enough to repair the damage caused by that collapse.

The president has argued that the situation could have been much worse without the array of efforts he took to aid struggling homeowners, including helping more people refinance their loans and forging a major settlement with the big banks. And over the past year there has been marked improvement, with prices stabilizing in many markets and homebuilders ramping up construction again.

Neither candidate has done much talking about the housing conundrum on the campaign trail. But whether voters around the country believe the housing market is headed toward better days or still mired in its post-bubble slump could influence which box they check in the voting booth.

http://www.washingtonpost.com/business/economy/housing-picture-65-percent-of-markets-worse-off-than-before-the-bust/2012/10/22/2b824ecc-1c73-11e2-ba31-3083ca97c314_story.html

Direckshun
10-25-2012, 10:38 PM
http://online.wsj.com/article/SB10001424052970204076204578076511050678732.html?mod=e2tw

New-Home Sales Rise 5.7%
BY ROBBIE WHELAN
Updated October 24, 2012, 5:12 p.m. ET

Sales of new homes jumped in September to their highest level in more than two years, the latest sign that the housing market is on firmer ground after a bruising five-year downturn.

Builders were on pace to sell new single-family homes at a seasonally adjusted annual rate of 389,000 units in September, the Commerce Department said Wednesday, up 5.7% from August, and 27.1% higher than September 2011's annual pace of 306,000. The level is the highest since April 2010, when first-time home buyers were rushing to qualify for a tax credit.

Direckshun
10-30-2012, 04:59 PM
Phenomenal news.

***Edit: NBC News links are the worst.***

Home prices rose at faster pace in August
By The Associated Press

Home prices rose in nearly all U.S. cities last month, the latest evidence of a steady recovery in housing.

The Standard & Poor's/Case Shiller index reports that national home prices increased 2 percent in August compared with the same month a year ago. That's the third straight increase and a faster pace than in July.

And prices in hard-hit Las Vegas rose 0.9 percent, the first year-over-year gain since January 2007.

The report also says prices rose in August from July in 19 of the 20 cities tracked by the index. Prices had risen in all 20 cities in the previous three months.

Seattle reported a small decline of 0.1 percent in August from July. Prices are still 3.4 percent higher than a year ago.

Direckshun
11-20-2012, 05:33 PM
Up.

http://www.nbcnews.com/business/economywatch/housing-starts-hit-highest-four-years-1C7172738#/business/economywatch/housing-starts-hit-highest-four-years-1C7172738

Housing starts hit highest in four years

Housing starts rose to their highest rate in more than four years in October, suggesting the housing market recovery was gaining steam, even though permits for future construction fell.

The Commerce Department said on Tuesday housing starts increased 3.6 percent to a seasonally adjusted annual rate of 894,000 units -- the highest since July 2008.

September's starts were revised down to show a 863,000-unit pace instead of the previously reported 872,000 units. Economists had expected groundbreaking to slow to a 840,000-unit rate last month.

The department said superstorm Sandy, which slammed the East Coast in late October, had a minimal impact on the data. The Northeast accounted for about 8 percent of overall housing starts. Groundbreaking in the Northeast fell 6.5 percent.

The housing market has turned around after an unprecedented collapse that landed the economy in its worst recession since the Great Depression. The recovery, marked by rising home sales, prices and building activity is being driven by pent-up demand against the backdrop of record low mortgage rates.

The Federal Reserve has targeted housing as a channel to boost growth, announcing in September that it would buy $40 billion in mortgage-backed securities per month until the outlook for employment improved substantially.

Residential construction is up 41.9 percent compared to October last year. Housing starts are now about 40 percent of their 2.27 million-unit peak in January 2006.

Homebuilding is expected to add to gross domestic product growth this year for the first time since 2005.

Last month, groundbreaking for single-family homes, the largest segment of the market, eased 0.2 percent to a 594,000-unit pace. Starts for multi-family homes surged 11.9 percent to a 300,000-unit rate, partly reflecting increased demand for rental apartments.

Building permits fell 2.7 percent to a 866,000-unit pace in October after jumping 11.1 percent the prior month. The drop last month was concentrated in the multifamily segment and is likely to be short-lived.

A report on Monday showed confidence among homebuilders hit its highest level in 6-1/2 years in November.

Economists had expected permits to fall to an 865,000-unit pace. Permits to build single-family homes rose 2.2 percent last month to a 562,000-unit pace. Permits for multi-family homes fell 10.6 percent to a 304,000-unit rate.

lewdog
11-20-2012, 05:51 PM
I need the housing market to slow down. I am not ready to buy a house just yet!

stonedstooge
11-20-2012, 05:57 PM
I just bought a house last month. Not sure what the banks are doing, but it was a foreclosure that was sold and assessed at 3x what I paid for it and, if the realtor had the right information, had 2x what I paid for it still in the red

lewdog
11-20-2012, 06:00 PM
I just bought a house last month. Not sure what the banks are doing, but it was a foreclosure that was sold and assessed at 3x what I paid for it and, if the realtor had the right information, had 2x what I paid for it still in the red

Nice man, sounds like you scored! I am still unsure about how much money (percentage) I should have saved for a downpayment?

Direckshun
11-25-2012, 01:36 AM
More details (http://www.nytimes.com/2012/11/21/business/economy/housing-starts-rose-in-october.html?partner=rss&emc=rss&_r=1&) on this month's numbers:

The Commerce Department said Tuesday that builders broke ground on homes in October at a seasonally adjusted annual rate of 894,000. That’s a 3.6 percent gain from September.

Single-family home construction dipped 0.2 percent to an annual rate of 594,000, down from a four-year high in the previous month. Apartment construction, which is more volatile from month to month, rose 10 percent to an annual rate of 285,000.

Applications for building permits, a sign of future construction, fell 2.7 percent to 866,000, after jumping 12 percent in September to a four-year high. Still, permit applications to build single-family homes rose to their highest level since July 2008.

Comrade Crapski
11-25-2012, 03:10 AM
Without major improvements in jobs and wages the housing "market" is kerplunk, as is the entire economy.

the steam
11-26-2012, 07:59 AM
Didn't the Federal Reserve announce recently that they would buy 40 billion a month worth of mortgage back securities? It's artificial but who cares as long as housing prices get back where they belong.

BucEyedPea
11-26-2012, 08:02 AM
Didn't the Federal Reserve announce recently that they would buy 40 billion a month worth of mortgage back securities? It's artificial but who cares as long as housing prices get back where they belong.

Good point. I just think the bold part should say inflate housing prices to a new artificial level.

loochy
11-26-2012, 12:55 PM
Nice man, sounds like you scored! I am still unsure about how much money (percentage) I should have saved for a downpayment?

20%

Direckshun
12-21-2012, 11:50 PM
http://thehill.com/blogs/on-the-money/1091-housing/274261-housing-market-crosses-halfway-mark-back-to-normal

Housing market crosses halfway mark back to normal
By Vicki Needham
12/21/12 11:49 AM ET

The housing market crossed the halfway mark last month on the long road back to normal.

A housing barometer that weighs three key indicators — construction starts, existing home sales and delinquencies and foreclosures — is now 51 percent back toward what is considered a healthy market, according to Trulia, a group that keeps an eye on the sector's progress.

Sales picked up pace, delinquencies and foreclosures continued their slow but steady decline, and while construction levels fell a bit, starts still hovered around the highest level of activity in four years.

Hurricane Sandy reduced activity in the Northeast with October and November showing smaller gains relative to previous months compared with the rest of the country.

Construction starts dipped in November but remain strong and are 37 percent of the way back to normal.

Starts in November were at an annual pace of 861,000, up 22 percent year-over-year.

For the past three months, construction starts have remained solidly above 800,000–the highest level since September 2008.

Existing home sales rose once again in November up 6 percent month-over-month to 5.04 million, the highest level since November 2009 and 73 percent of the way back to normal.

Even better, “distressed” sales (foreclosures and short sales) represent a declining share of overall sales, making way for more “conventional” home sales.

The delinquency and foreclosure rate maintained a new post-crisis low.

In November, 10.63 percent of mortgages were delinquent or in foreclosure, down a tad from the 10.64 percent in October. The combined rate is at its lowest level in four years and is 41 percent back to normal.

The market hit bottom in 2009 and it has taken three full years just to get this far.

Comrade Crapski
01-03-2013, 10:24 AM
:drool:

http://confoundedinterest.wordpress.com/2013/01/03/happy-new-year-mortgage-applications-fall-10-4-jobless-claims-rise-372k/

CLX
01-04-2013, 09:12 AM
The housing recovery is smoke and mirrors. How many people are holding mortgages on houses they can't sell because their value has dropped to 50% or lower than when they bought them?

I doubt that a full recovery for real estate will be achieved in 2013. With the change in taxes there will be less dollars to spend for a home. The Bush era tax cuts were extended for those below $400,000 - $450,000 but the taxes will not stay at the same level for those under the figure used. Not only will there be more income taxes deducted from your pay but there will be added taxes taken for the Affordable Health Care Act.

The fiscal cliff was avoided at a cost of the debt ceiling being raised another $4 trillion over the next few years. Borrowing money that will never be paid back is still wrong and will always be wrong.

FD
01-04-2013, 09:19 AM
The housing recovery is smoke and mirrors. How many people are holding mortgages on houses they can't sell because their value has dropped to 50% or lower than when they bought them?

I doubt that a full recovery for real estate will be achieved in 2013. With the change in taxes there will be less dollars to spend for a home. The Bush era tax cuts were extended for those below $400,000 - $450,000 but the taxes will not stay at the same level for those under the figure used. Not only will there be more income taxes deducted from your pay but there will be added taxes taken for the Affordable Health Care Act.

The fiscal cliff was avoided at a cost of the debt ceiling being raised another $4 trillion over the next few years. Borrowing money that will never be paid back is still wrong and will always be wrong.

:clap: Thats an impressive amount of wrong all in one post.

CLX
01-04-2013, 12:25 PM
:clap: Thats an impressive amount of wrong all in one post.

That was a whole batch of no proof to the contrary.:shake: Shoot holes in my comments. Tell me about the house you bought for 1/2 it's value or the house you sold and recouped all of the money you had in it.

Hoover
01-04-2013, 12:32 PM
Housing market in Des Moines has been strong all year.

ChiefsCountry
01-04-2013, 12:35 PM
We have another big hit in foreclosures coming up soon.

ChiefsCountry
01-04-2013, 12:36 PM
Housing market in Des Moines has been strong all year.

Figured it was since nearly all of the homes I sold this year were from Iowa.

CLX
01-04-2013, 12:48 PM
Housing market in Des Moines has been strong all year.

I would concede that many of the states in the middle of the country may have kept a stronger housing market than the large metropolitan cities on either coast. I saw an 800 Sq ft. house with about 3/4 of an acre of land sell for $1,000,000 in the South Bay in California. That same house and land would probably go for $20,000 in the middle country.

FD
01-04-2013, 01:14 PM
That was a whole batch of no proof to the contrary.:shake: Shoot holes in my comments. Tell me about the house you bought for 1/2 it's value or the house you sold and recouped all of the money you had in it.

OK

The housing recovery is smoke and mirrors. [Wrong, as a number of articles in this thread support, the recovery has been sustained and is picking up steam and projected to continue, even feeding back into the labor market now with construction employment up 3% in today's report] How many people are holding mortgages on houses they can't sell because their value has dropped to 50% or lower than when they bought them? [Certainly less than a year ago]

I doubt that a full recovery for real estate will be achieved in 2013. With the change in taxes there will be less dollars to spend for a home. The Bush era tax cuts were extended for those below $400,000 - $450,000 [Thus effecting less than 2% of the population, not going to dent the housing market.]but the taxes will not stay at the same level for those under the figure used. Not only will there be more income taxes deducted from your pay [Wrong. You are thinking of payroll taxes, not income taxes] but there will be added taxes taken for the Affordable Health Care Act. [Mostly wrong, most were already in place]

The fiscal cliff was avoided at a cost of the debt ceiling being raised another $4 trillion over the next few years.[VERY wrong] Borrowing money that will never be paid back [Wrong!] is still wrong and will always be wrong.

CLX
01-04-2013, 07:14 PM
OK

Your position is as baseless as you are. Prove one point and I'll concede my point. The costs that are going to be incurred will raise the debt by $4 Trillion over the next few years. that will put our national debt at nearly $20 trillion within the next 4-6 years. How and when will that be paid back?

All you have is that you don't believe the conservative view of what is happening to the U.S. The cause of what is happening is not Obama's fault alone, he's had help over the past 20 or so years.

Tell me how the U.S. will PAY back the debt. We will never have a balanced budget, balanced as revenue in and the budget only spends what that revenue level is. You claim that Clinton had a budget surplus but that is WRONG, to put it in your vernacular. Clintons budget was a deficit budget and all revenue taken in was spent as was a sizable portion of the money borrowed from the Fed.

Cannibal
01-04-2013, 07:41 PM
funny that right wingers would actually root against the housing market.

I mean, can you actually get more partisan than that? Actually rooting against your own home value? HAHA!

Fuckin assholes... holy Jesus.

CLX
01-05-2013, 09:56 AM
Cann, rooting against home values? Home values in the middle of the country are still stagnant. On the East and West coasts there is some modicom of improvement but the home values have still not raised enough to call the housing market recovered. A recovery would be an across the board change in the direction of home prices.

Anyone that wants to buy a home for an investment may want to find where the bottom of the housing market lies and gauge if the prices are fluctuating or if they are actually on a sustained gain. At the moment there is some movement but not enough to claim recovery in a substantial manner.

funny that right wingers would actually root against the housing market.

I mean, can you actually get more partisan than that? Actually rooting against your own home value? HAHA!

Fuckin assholes... holy Jesus.

Pablo
01-05-2013, 09:59 AM
My Dad is contracting for an appraisal group in Iowa; and he's getting absolutely swamped with work.

Things are looking up from his end of things.

FD
01-05-2013, 10:37 AM
Your position is as baseless as you are. Prove one point and I'll concede my point. The costs that are going to be incurred will raise the debt by $4 Trillion over the next few years. that will put our national debt at nearly $20 trillion within the next 4-6 years. How and when will that be paid back?

All you have is that you don't believe the conservative view of what is happening to the U.S. The cause of what is happening is not Obama's fault alone, he's had help over the past 20 or so years.

Tell me how the U.S. will PAY back the debt. We will never have a balanced budget, balanced as revenue in and the budget only spends what that revenue level is. You claim that Clinton had a budget surplus but that is WRONG, to put it in your vernacular. Clintons budget was a deficit budget and all revenue taken in was spent as was a sizable portion of the money borrowed from the Fed.

The U.S. has run deficits almost continuously for the past 100 years, and yet we have always paid back what we've borrowed. Debt levels have fluctuated considerably in that time as well. We will probably always carry some national debt, but that is in now way the same thing as saying we wont pay back what we borrow.

CLX
01-05-2013, 10:59 AM
The U.S. has run deficits almost continuously for the past 100 years, and yet we have always paid back what we've borrowed. Debt levels have fluctuated considerably in that time as well. We will probably always carry some national debt, but that is in now way the same thing as saying we wont pay back what we borrow.

In the past the debt has not been anywhere near the level it is now and where it will be going due to AHCA (Obamacare) and other give away programs in the government. As it stands now our gross national product is less than the current debt. In recent years, last 40, we have never paid off the debt, we have paid towards it but I would bet we are nearing the point, if we haven't already achieved the distinction, our annual payments may not even cover the interest on the debt.

If you want to think we will pay the debt of, then more power to you. To achieve a payoff our taxes, for all people in the nation, would virtually take all of our paychecks for several years.

At the end of the day the statement stands, we cannot keep borrowing to run the nation. Revenue in to the tax coffers should be the only money the government is allowed to spend. When the money runs out what do you do? When my money runs out I can no longer purchase stuff, I do not run a deficit household.

FD
01-05-2013, 12:35 PM
In the past the debt has not been anywhere near the level it is now and where it will be going due to AHCA (Obamacare) and other give away programs in the government. As it stands now our gross national product is less than the current debt. In recent years, last 40, we have never paid off the debt, we have paid towards it but I would bet we are nearing the point, if we haven't already achieved the distinction, our annual payments may not even cover the interest on the debt.

If you want to think we will pay the debt of, then more power to you. To achieve a payoff our taxes, for all people in the nation, would virtually take all of our paychecks for several years.

At the end of the day the statement stands, we cannot keep borrowing to run the nation. Revenue in to the tax coffers should be the only money the government is allowed to spend. When the money runs out what do you do? When my money runs out I can no longer purchase stuff, I do not run a deficit household.

You are confusing the idea of paying off the debt with repaying our debt. They are different.

How do you think the U.S. can borrow money at rates lower than we have ever seen in our history if we aren't going to repay that money?

patteeu
01-05-2013, 10:06 PM
funny that right wingers would actually root against the housing market.

I mean, can you actually get more partisan than that? Actually rooting against your own home value? HAHA!

****in assholes... holy Jesus.

Yeah, you can. Just look back 7 or 8 years and you will find left wingers rooting against their own troops on the battlefield and celebrating death toll milestones.

CLX
01-06-2013, 01:01 PM
You are confusing the idea of paying off the debt with repaying our debt. They are different.

How do you think the U.S. can borrow money at rates lower than we have ever seen in our history if we aren't going to repay that money?

How much debt does the U.S. currently carry? $16.4 Trillion? What is the GNP of the U.S.? How often have you seen the national debt go down?

http://www.bing.com/images/search?q=chart+of+national+debt+by+year&FORM=IQFRBA&view=detail&id=C5078DA8ECEFCC148DC2CD1CF3B25ACD5812D98F#

http://www.bing.com/images/search?q=chart+of+national+debt+by+year&FORM=IQFRBA&view=detail&id=9BC0F8140B25A342AFF9172E9B2747651216ED52#

http://www.bing.com/images/search?q=chart+of+national+debt+by+year&id=2C4FA0B48A5CA0EE85FB067473514D3D509FA661&FORM=IQFRBA

Show me in the chart of your choice where the national debt has been decreased. I don't think you understand we have gone beyond the amount anyone feels we could ever pay back, that's why we have lost credit rating. Borrowing more doesn't help. If you loan me $1,000,000 a year and I only pay back interest, if that, are you going to keep loaning me the money with hopes that someday you will get your money back?

Comrade Crapski
01-06-2013, 01:05 PM
How do you think the U.S. can borrow money at rates lower than we have ever seen in our history if we aren't going to repay that money?

The US Treasury prints it and lends it to the US Fed.

The US government is both creditor and debtor.

Amazing, isn't it?

CLX
01-06-2013, 03:40 PM
The US Treasury prints it and lends it to the US Fed.

The US government is both creditor and debtor.

Amazing, isn't it?

I don't think you'll make him understand.

Everything is OK, please go back to your evening TV shows!

FD
01-07-2013, 08:36 AM
I don't think you'll make him understand.

Everything is OK, please go back to your evening TV shows!

The Fed buys only a portion of the debt. The value of it is set by the marginal investor, which is not the Fed. Currently, our debt is so highly valued that once you account for inflation the interest rate we owe on it is actually negative. Pretty sweet deal for money we are never paying back, I suppose.

blaise
01-07-2013, 08:45 AM
funny that right wingers would actually root against the housing market.

I mean, can you actually get more partisan than that? Actually rooting against your own home value? HAHA!

****in assholes... holy Jesus.

Totally different than when liberals posted bad economic news with glee before Obama became President.

You're right. Partisanship is limited to one party.

Direckshun
01-17-2013, 03:55 PM
http://www.nbcnews.com/business/economywatch/housing-starts-climb-highest-rate-june-2008-1B8014466

Housing starts climb to highest rate since June 2008
Reuters
8 hours ago

Groundbreaking to build new homes accelerated in December to its fastest pace in over four years, supporting the view that housing is poised to provide a substantial boost to the U.S. economy.

The Commerce Department said on Thursday that starts at building sites for homes surged 12.1 percent last month to a 954,000-unit annual rate.

Data for U.S. housing starts can be volatile and is sometimes subject to large revisions. The government revised downward its estimate for November housing starts to a 851,000-unit rate from the originally reported 861,000.

"Housing is definitely a pocket of strength. It's not only on the back on the bounce from hurricane Sandy. This was broad-based," said Yelena Shulyatyeva, U.S. economist at BNP Paribas.

Some of the strength in December's reading for starts came from a 20.3 percent surge in multi-family unit construction. That component is especially volatile.

Wednesday's report nonetheless builds on a trend in growth that has led many analysts to expect residential construction boosted the economy last year for the first time since 2005.

December's pace of groundbreaking was the fastest since June 2008.

This year, home building is expected to provide stronger support to economic growth, which would partially counter the drag expected from tighter fiscal policy as Washington works to shrink the federal budget deficit.

Permits for future home construction edged higher to a 903,000-unit rate, the quickest since July 2008.

The housing market has regained some footing after a historic collapse that helped push the economy into its worst recession since the Great Depression.

Last month, groundbreaking for single-family homes, the largest segment of the market, climbed 8.1 percent last month to a 616,000-unit pace.

blaise
01-17-2013, 04:21 PM
Good news Obama.
Bad news Bush.

cosmo20002
01-17-2013, 07:14 PM
Good news Obama.
Bad news Bush.

Really, it is hard to argue with that. Truth is truth.

BucEyedPea
01-17-2013, 07:19 PM
It's another bubble courtesy of the Keynesians at the Fed. It will lead down the same path with a bust eventually too.

patteeu
01-18-2013, 12:15 PM
http://www.nbcnews.com/business/economywatch/housing-starts-climb-highest-rate-june-2008-1B8014466

Housing starts climb to highest rate since June 2008
Reuters
8 hours ago

That doesn't sound like such a positive headline to me. Were housing starts blowing people away in June 2008?

When Obama-era economic news starts topping the best economic news of some recent President not named Obama, let me know.

Comrade Crapski
01-18-2013, 12:22 PM
The Fed buys only a portion of the debt. The value of it is set by the marginal investor, which is not the Fed. Currently, our debt is so highly valued that once you account for inflation the interest rate we owe on it is actually negative. Pretty sweet deal for money we are never paying back, I suppose.

Yes, the largest portion:

http://www.businessinsider.com/who-owns-us-debt-2011-7#

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