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Housing Bubble Bursting?

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Bobby Bucks said:
It certainly is when it comes to real estate development. When they go belly-up they’re accountable to no one in most instances. I was talking to a HVAC contractor who is Scottish and moved here a few years ago. He said one of the most shocking things in the US is how contractors can screw their subcontractors, file bankruptcy, keep most of their assets and start all over again with a clean slate.
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It seems as though the new bankruptcy law did not do anything to protect honest creditors. It makes it harder for debtors to file bankruptcy even in legitimate situations, therefore, the number is down initially. But, crooks who want to game the system can still do so. I suspect that all the hoopla really boils down to making it harder for those seeking bankruptcy protection from medical expenses.

Anyway, back on topic:

http://www.realtor.org/Research.nsf/Pages/MetroHomePriceAnalysisReports?OpenDocument

They didn't have Joplin, so I looked up Springfield. Not that there is really anything in common between the two markets. I also found it interesting that they list Little Rock... but not NW Arkansas. If I remember Terril's post from a few quarters back correctly, NW Arkansas was one of the fastest growing MSA's in the U.S. Why do you think NAR would leave it out of their research?
 
Steve, I looked at the San Diego data by NAR. That is not current; most recent data is 06Q1 in that report. Things have changed significantly. NAR is the dumbing down of reality to suggest things are not that bad, and it is not getting worse, and good times are coming back.:rof:
 
Bargain-Hunting in San Diego's Real-Estate Slump

http://www.npr.org/templates/story/story.php?storyId=6284610

sddefaults200.jpg


October 17, 2006

The real-estate party in San Diego is so over. The big question now is how bad the hangover will be.

After more than doubling in five years, home prices in San Diego have hit the brakes. And analysts are watching the market closely for signs of what other cities may have in store.

While some are forecasting tough times ahead, a few brave buyers see opportunity.

A new kind of real-estate sign has been popping up on telephone poles around San Diego. The lettering on the cardboard is plain -- and so is the message: DumpingHomes.com. Curious customers who checked out the Web site last week would have seen an ad for a four-bedroom, four-bath home that was auctioned off over the weekend by Bill Shepner, a.k.a. "William the Liquidator."

Last month, the average sales price was about4.5 percent lower than it was a year ago. And the number of homes sold plunged by 35 percent.
 
How Could the Housing Slump Affect the Nation's Economy?

http://online.wsj.com/public/article/SB116100680840693865-KaF49km2Dnq8s4uHaaKaKeXBF_I_20061116.html?mod=tff_main_tff_top

How Could the Housing Slump Affect the Nation's Economy?


October 18, 2006

Earlier this month, Federal Reserve Chairman Ben Bernanke highlighted the risk that the sinking housing market could put a dent in U.S. economic growth in the second half of the year. Mr. Bernanke, answering questions after a speech in Washington, said the housing sector is undergoing a "substantial correction" that will likely shave about one percentage point off of the nation's growth in the second half, "and probably something going into next year as well," estimates close to private forecasters' views. But he also said it is tough to predict how the weakness will impact the overall economy.


The Online Journal asked Celia Chen, director of housing economics for Moody's Economy.com; Christopher Mayer, a Columbia University housing economist; and Susan Wachter, a professor of real estate, finance and city and regional planning at the University of Pennsylvania's Wharton School, to discuss their views on how the housing market could shake out and how big a ding it could put in economic growth.

Celia Chen writes: Housing markets are sliding fast. Home sales are well off of last summer's peak, house prices are down on a year-ago basis, inventories are mounting, and leading indicators of housing activity suggest that the market will weaken further before it turns up. Indeed, by at least one indicator, conditions have sunk to the depths hit during the last housing bust in the early 1990s.
 
Randolph Kinney said:
Terrel, Ana Nicole Smith filed for bankruptcy after she lost in state court a claim on her late husband's estate.
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Randolph it would certainly brighten the bubble thread to see a graph or some other illustration of Anna Nicole.....in the interest of the topic course. :-)
 
Steve Owen wrote:
http://www.realtor.org/Research.nsf/...s?OpenDocument

They didn't have Joplin, so I looked up Springfield. Not that there is really anything in common between the two markets. I also found it interesting that they list Little Rock... but not NW Arkansas. If I remember Terril's post from a few quarters back correctly, NW Arkansas was one of the fastest growing MSA's in the U.S. Why do you think NAR would leave it out of their research?
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Because they prefer positive spin over reality???
 
Naturally, they want to make things appear as "rosy" as possible. As with any research or news, you have to consider the source.
 
RE ;Bankruptcy court & RE

Terrel & Bobby Bucks said:
It certainly is when it comes to real estate development. When they go belly-up they’re accountable to no one in most instances. I was talking to a HVAC contractor who is Scottish and moved here a few years ago. He said one of the most shocking things in the US is how contractors can screw their subcontractors, file bankruptcy, keep most of their assets and start all over again with a clean slate.
Click to expand...
===================

Sometimes its just not possible to stay out of court;
was talking to a long time RE agent, who was pretty much good to do business with,
he got an official [required ]court invitation as we talked.

And after seeing what the bankruptcy lawyers did charge the seller on OCT closing statement, and the time they did seem to be wasting;
certainly did corfirm my banker dad's suggestion-
''try to stay out of court son , thats how lawyers get rich.''
 
Mr. Gordon says that affordability is key. Home prices have increased at the second fastest rate in over a century, only surpassed by the years following World War II. This rapid cost increase means that many people are simply priced out of the market.
Click to expand...

Now, that's what we've been talking about!
 
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