Housing Bubble Bursting?

[Greg Bell]

Dow down 226 I must go and sharpen my sicle...

you checked this morning bloomberg.com here are the very first seven stories in its home page:


Stocks in U.S. Drop as DuPont, Countrywide Earnings Prompt Growth Concern
Countrywide Earnings Slump 33 Percent on Late Mortgages; 2007 Forecast Cut
DuPont Profit Falls on Decline in U.S. Housing, Auto Markets: Shares Slide
KKR, Homeowners Face Funding Drain as Wall Street's CDO Machine Shuts Down
Dollar Declines to Record Low Against Euro on Spreading U.S. Mortgage Woes
Northrop Net Income Climbs as Shipyard Recovers From Strike-Related Delays
Basis Capital Hires Blackstone to Advise on Funds After Subprime Losses

 

[Greg Bell]

Yikes..I scared myself...

 

[Randolph Kinney]

Is this really surprising? Maybe to some,not to others

California mortgage defaults hit 10-year high

Lenders sent California homeowners the highest number of mortgage default notices in more than a decade during the second quarter, the result of flat or falling prices, anemic sales and a market struggling with the excesses of the 2004-2005 home-buying frenzy, a real estate information service reported.


Lenders filed 53,943 notices of default (NoDs) during the April-through-June period, up 15.4 percent from 46,760 for the previous quarter, and up 158 percent from 20,909 for second-quarter 2006, according to DataQuick Information Systems of La Jolla.


Last quarter's default level was the highest since 54,045 NoDs were recorded statewide in fourth-quarter 1996, DataQuick reported. By contrast, defaults peaked in first-quarter 1996 at 61,541 and reached a low of 12,417 in third-quarter 2004. An average of 34,172 NoDs have been filed quarterly since 1992, when DataQuick's NoD statistics begin.

 

[Greg Bell]

Read this it's some really funny stuff about the Housing Bubble ,er , excuse me , IF it exists...Good reading fro the Pollyanna's..

http://drhousingbubble.blogspot.com/2007/07/real-homes-of-genius-today-we-salute_24.html

 

[Greg Bell]

Reaper Report: Please see stock market.......

 

[Greg Bell]

Uh Oh...Down 240...Put on your rose colored glasses quickly..

 

[Austin]

http://biz.yahoo.com/ap/070726/economy.html?.v=17

Sales of New Homes Plunge by the Largest Amount in 5 Months, Commerce Department Reports

WASHINGTON (AP) -- Sales of new homes fell in June by the largest amount in five months as the housing industry continued to struggle with its worst downturn in 16 years. The median home price also fell. The Commerce Department reported that sales of new single-family homes dropped by 6.6 percent last month to a seasonally adjusted annual rate of 834,000 units. The decline was more than triple what had been expected and was the largest percentage drop since sales fell by 12.7 percent in January. Sales are now 22.3 percent below the level of a year ago. The median price of a new home sold last month dropped to $237,900, down by 2.2 percent from a year ago. It was the biggest year-over-year price drop since a 6.5 percent fall in April. The median price is the point where half the homes sold for more and half for less.

 

[Steve Owen]

Saw this in the local news a couple of days ago, but the Joplin Globe didn't put the story on line, so I had to scan it... sorry for the quality.

Note that house prices are increasing everywhere except the blue. Housing markets are local!

Now, that is not polyanna, and it does not mean we don't have a problem. We have a very big problem. It just does not make any sense at all to look at housing statistics on a national level in a situation like this.

That being said, looking at the securities markets and other factors, such as money supply, interest rates, unemployment, etc. on a national level is completely logical.

 

[Greg Bell]

Due to lack of financing all Housing is not local , it's national.(Credit crunch).This crash will take years to bring ALL homes prices down 20% to 50%.Don't believe the so called charts that show and increase in value , it's just not happening , ask the builders.I prefer Goldilocks syndrome.The Reaper Has spoken..

 

[Greg Bell]

Where's all the Pollyanna's???.