U.S. home foreclosures reach record high


U.S. home foreclosures and the rate of homes entering foreclosure rose to record highs in the second quarter, the Mortgage Bankers Association said Friday.

"The national foreclosure numbers continue to be driven by the hardest-hit states continuing to get much worse," Jay Brinkmann, the association's chief economist and senior vice president for research and economics, said in a news release.

The increases in foreclosures in California and Florida overwhelmed improvements in states such as Texas, Massachusetts and Maryland, he said.

"It is unsurprising that mortgage delinquencies picked up further in the second quarter," John Ryding, chief economist, and Conrad DeQuadros, senior economist, at RDQ Economics in New York, said in commentary.

"However, the increase in delinquencies and foreclosures up to this point is most likely predominantly the product of poor underwriting standards. Going forward, we have to overlay the weak economy and labor market picture as this more traditional driver of delinquencies will probably become more of a factor," they said.

http://www.forbes.com/topstories/feeds/reuters/2008/09/05/2008-09-05T161932Z_01_N05474205_RTRIDST_0_USA-HOUSING-FORECLOSURES-UPDATE-2.html

Doesn't it make you sick that no corrupt and high-profile housing/mortgage/banking CEO who enriched himself during the bubble has been arrested yet, while the US taxpayer is now on the hook for hundreds of billions in losses?


I think this blogger is smarter than financial responsible people?

"I told all of you financial responsible fools a long time ago that if you pay your mortgage on time, honor your debts and play by the rules, you are a SUCKER!

I bought a luxury home that I could not afford, saw it jump in value greatly and took out a heloc loan after another heloc loan and spent it on luxury vacations, a nice car, fancy furniture, etc...

As of today, I have not made my mortgage payments for 11 months and the company calls me, but they have not even filed a notice of default!

You know a long time ago where we are headed; a total all out national bailout of people like me! While I will laugh all the way back to the bank (literally speaking), you smart tax payers will get NOTHING (oh you will get to pay my bills, LOL, LOL, LOL)."


Q of the day: Is it new mantra that we would like to give our kids that spend, spend and spend. If you can not pay govt. will take care.

http://vancouvercondo.info/wp-content/uploads/2008/09/vcishopspreefull.gif

http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=e78a2595-baea-42ee-94c5-ea7868b019b0

"It's going to take some time to work through this excess supply and what that's doing is putting downward pressure on prices," said Legge. "So it's not unrealistic to see prices come down because they purely went too high, too fast and what we're seeing now is a work through of that to bring prices to a more reasonable level."


Now all experts/REALTORS ( not sure why this is always in cap) know that buyers are aware of price down and inventory up so they are talking what buyers want to listen and not caring about seller’s sale pitch.


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............As well, residential building permit value year to date in the City of Calgary is down 35 per cent to $1.2 billion compared with a year ago. According to the city, applications have been submitted for a total of 5,543 new residential dwelling units for the first eight months of this year. For the same period in 2007 and 2006, there were applications for 9,683 and 10,866 new residential units respectively. In August, the value of residential permits plunged to $80.9 million compared with $168 million in August 2007.

Housing starts in the Calgary area fell 60.3 per cent for the month of August as the market experiences what one economist calls "a hangover."
Leah Hennel, Calgary Herald

"bad" news on Calgary's housing front comes one week after the Calgary Real Estate Board reported the average MLS sale price for a single-family home in Calgary fell by more than nine per cent in August compared with a year ago, while the average condo price dropped by just over 10 per cent and sales in both markets also declined -- by nearly 11 per cent for single-family homes and more than 17 per cent for condos.

Calgarians were "riding the wave" of lofty years in the real estate market in 2006 and 2007, said Adam Legge, vice-president and chief economist for Calgary Economic Development, and many thought "the good times were going to keep rolling forever."......................

They have misled the public for last 24 months.

"now is the time to buy..."
"prices can only go up from here..."
"buy before the sale is over"
"get into the market before you are priced out"

Is there a way to sue them? What does it take to launch a class action lawsuit for misleading the public?

From the link provided by Rahul Singh earlier (http://www.movesmartly.com/2008/09/toronto-real-es.html) , I also read the below

"In the 905 Region the average price increased two per cent to $356,657 from last August’s $348,563. Compared to the August 2006 figure of $334,245 the average price in the 905 Region has increased seven per cent."

"Several neighbourhoods throughout the GTA experienced increased sales activity last month compared to August 2007.

In Pickering (E13) transactions rose six per cent based primarily on strong semi-detached home sales.

In Halton Hills (W27) strong attached/row house sales activity lead to a three per cent increase in transactions overall.

Condominium apartment and detached home transactions drove Rosedale (C09) to an 81 per cent increase in overall sales.

Detached home transactions also contributed to an 11 per cent overall increase in sales in Aurora (N06)."


Some give data and reasoning for price hike... some give data and reasoning for price crash. It's their opinion. It's upto the buyer/seller to make a proper judgement. isn't it? Doubt if you can get lawsuit even accepted in court.

There is no problem if they provide data and statistics but when they make false & misleading statements they should become liable for a lawsuit.

Quote:

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Originally posted by viggy


Some give data and reasoning for price hike... some give data and reasoning for price crash. It's their opinion. It's upto the buyer/seller to make a proper judgement. isn't it? Doubt if you can get lawsuit even accepted in court.

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Desi in Alberta, I agree with you and us seen recent example of Fannie Mac, Feedie Mac and Countrywide Financial. Profit is Capitalism and loss is socialism. I would like RE laws and transaction like Swiss.


But these experts manipulate data and statistics too. Why not they open their mls site for everyone what realtor can see? oh.. yea we don't pay fee for that.

1. "Inventory is going down" and that is good sign as per Real Estate Board but never understand why high inventory is bad sign? Do they keep records about expired listing and tell the people?

2. Do they display the entire previous price up/down record of a particular house from day 1st?

3. If you want to cut price, first take out from market and bring with new price with new mls number so buyers can not see all price down record.

4. Do they sum up other site like comfree or welist in inventory total?
5. Do they sum up future coming new condo/houses in next 6 months?

6. Why are realtor/experts keeping all source of info? I think mostly people who is spending 400K have at least 12th grade education to understand data/graph/median/ average/inflation /filling the forms.

If you ask too many Q then they ask us q "Would you treat your dentist and doctor like that"?

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http://news.yahoo.com/s/ap/20080910/ap_on_go_co/oil_speculation

WASHINGTON - Speculation by large investors — and not supply and demand for oil — were a primary reason for the surge in oil prices during the first half of the year and the more recent price declines, an independent study concluded Wednesday.
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What did happen to poor China and India who's drinking all the oil? It's all about speculation in business and all have same end that is called crash.