Home Prices

Homeowners still in denial


Over at Zillow, they’ve just released the results of the latest Homeowner Confidence Survey, and wouldn’t you just know it, but homeowners are still way out of touch on their own home’s value.

While now more than half have faced reality and acknowledge that their own home’s value has declined over the past year, over 70 percent believe that their homes will either maintain present value, or even appreciate, in the first half of 2009.

Pop the champagne, the bottom is in!


‘Oh, what have I done?’, originally uploaded by NotoriousRaychel.

Case/Shiller, Home Prices, Uncategorized

Case-Shiller: Home prices crashing


From CNN:

An index of home prices in 20 major metropolitan areas fell at a record annual pace in November, to levels not seen since 2004, according to a report released Tuesday.

The S&P Case-Shiller Home Price Index, a sampling of 20 cities from across the nation, fell a record 18.2% over the 12 months ended Nov. 30. That brought the index to its lowest point since February 2004. From its peak in mid-2006, the index has plunged a whopping 25.1%.

Eleven of the 20 cities showed record declines, and the 12-month price drop for 14 of the cities was a double-digit percentage.

“The freefall in residential real estate continued through November 2008,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s, in a prepared statement. He said the 20-city index has fallen for every month since August 2006, a total of 28 consecutive months.

28 months and counting. Unfortunately, there is no end in sight for the collapse of U.S. home prices.


Crash into me.., originally uploaded by EarthOwned.


Home Depot to close Expo stores, shed 7,000 jobs


Seen at The Consumerist:

Home Depot is shuttering all of its Home Depot Expo stores, which turned out never to be much of a success anyway. Even with homeowners flush with equity-line cash, the stores apparently never really performed well.

7,000 jobs are to be eliminated.

Look for killer discounts on Viking and Miele appliances!


thinset, originally uploaded by IHP.

Existing Home Sales, News

Existing home sales show surprise gain


From CNN:

The number of existing homes sold in December rose 6.5% from the previous month, according to a housing industry report released Monday.

The National Association of Realtors said that home sales increased to a seasonally-adjusted, annualized rate of 4.74 million units. That’s up from a revised 4.45 million units sold in November and more than the 4.4 million units projected by a consensus of industry analysts as reported by Briefing.com.

Still, December’s existing home sales are down 3.5% compared with December of 2007, when the seasonally-adjusted, annual rate was 4.91 million.


The median existing home price was down 15.3% to $175,400 from December 2007, when the median price was $207,000. The median price measures where half of the homes sold for more and half sold for less.

At some point, prices will drop to a point that homes become affordable. The real question is how many of these homes were either REO or short sales.


Welcome to Gomer-ville, originally uploaded by oybay.


Porn industry seeks bailout


From CNN:

Another major American industry is asking for assistance as the global financial crisis continues: Hustler publisher Larry Flynt and Girls Gone Wild CEO Joe Francis said Wednesday they will request that Congress allocate $5 billion for a bailout of the adult entertainment industry.

“The take here is that everyone and their mother want to be bailed out from the banks to the big three,” said Owen Moogan, spokesman for Larry Flynt. “The porn industry has been hurt by the downturn like everyone else and they are going to ask for the $5 billion. Is it the most serious thing in the world? Is it going to make the lives of Americans better if it happens? It is not for them to determine.”

Francis said in a statement that “the US government should actively support the adult industry’s survival and growth, just as it feels the need to support any other industry cherished by the American people.”

“We should be delivering [the request] by the end of today to our congressmen and [Secretary of the Treasury Henry] Paulson asking for this $5 billion dollar bailout,” he told CNN Wednesday.

Flynt and Francis concede the industry itself is in no financial danger — DVD sales have slipped over the past year, but Web traffic has continued to grow.

Insert obligatory “money shot” joke here.


Larry’s Club, originally uploaded by redford227.

Case/Shiller, Home Prices, Meltdown, News

Real estate prices take a beating


From CNN:

Home prices posted another record decline in October, falling 18% compared with a year earlier, according to a closely watched report released Tuesday.

The 20-city S&P Case-Shiller index has posted losses for a staggering 27 months in a row. In October, 14 of the 20 cities set fresh price decline records.

“The bear market continues; home prices are back to their March 2004 levels,” says David Blitzer, Chairman of the Index Committee at Standard & Poor’s.

Sunbelt cities suffered the most, but most of the country is watching home values fall. In Phoenix prices have plunged 32.7% since October 2007, Las Vegas home values are down 31.7% year-over-year, while San Francisco prices fell 31%. Miami, Los Angeles and San Diego recorded year-over-year declines of 29%, 27.9% and 26.7%, respectively.

“As of October 2008, the 20-City Composite is down 23.4%,” said Blitzer. “In October, we also saw three new markets enter the ‘double-digit’ club.”

Atlanta, Seattle and Portland reported annual rates of decline of 10.5%, 10.2% and 10.1%, respectively.

The drop in home prices seems to be accelerating for a number of cities. Surely, the bottom is still far-off.


On the run, originally uploaded by Zozu9.

Bank Failures, Current Events

Bank Failures 24 and 25


Number 24: Haven Trust Bank, Duluth Georgia;

Number 25: Sanderson State Bank, Sanderson, Texas.

Will we get 30 for the year?


24 || 25, originally uploaded by Libertinus.

Current Events, Home Prices, Negative Equity

US homes lose $2 trillion in 2008


From CNN:

American homeowners will collectively lose more than $2 trillion in home value by the end of 2008, according to a report released Monday.

The real estate Web site, Zillow.com, calculated that home values have dropped 8.4% year-over-year during the first three quarters of 2008, compared with the same period of 2007.

Some 11.7 million Americans are now “underwater,” owing more on their mortgage balances than their homes are worth.

Zillow collects home values and analyzes home price trends in 163 markets; all but 30 registered price drops over the nine months ended September 30, compared with the same nine-month period of 2007.

“This year marked the acceleration of the market correction, and is likely to end with the eighth consecutive quarter of declines in home values,” said Dr. Stan Humphries, Zillow’s vice president of data and analytics. “Homeowners in most areas we cover are struggling with foreclosures pouring into the market, large amounts of negative equity and dropping home values.”

Two trillion dollars in lost home value, and there is still no end in sight.

Erika, originally uploaded by terryhadalittlelamb.

Current Events, Foreclosures, Meltdown, News

November foreclosures drop 7%


From CNN:

Foreclosure filings dropped 7% from October to November, according a report released Thursday. But don’t break out the bubbly. The tide of foreclosures may be ebbing now, but the flood isn’t over yet.

“There are several indications that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months,” James Saccacio, RealtyTrac’s CEO, said in a statement.

November foreclosure filings fell to 259,085, or one for every 488 households in the nation, according to the latest report from RealtyTrac, the online marketer of foreclosure properties. That was down from October, but up 28% from November of 2007.


November’s decline in foreclosure filings is deceiving, according to Rick Sharga, RealtyTrac’s vice president of marketing, because much of it is attributable to temporary foreclosure prevention efforts.

“The reduction is because Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) both announced moratoriums on foreclosures, while major lenders also put the brakes on foreclosure proceedings,” said Sharga. “State moratoriums are also delaying the onset of foreclosures. But all that will only delay, not avoid them.”

Sharga expects to see another good report in December, but a significant spike in foreclosure filings come January.

Oh, it’s only temporary.


7, originally uploaded by Seryo.


American Idol winner in foreclosure


From WSOC:

An “American Idol” winner is about to get evicted from her upscale home in south Charlotte.

Multiple online reports cite court records showing Fantasia Barrino’s home on Bevington Place is in foreclosure. She bought the 6,000-square-foot home last year.

The house is set to be auctioned off next month.

Barrino won the third season of “American Idol.” She grew up in Charlotte and High Point.

She also joins a growing list of celebrities, sports figures, and extreme home makeover recipients ending up in foreclosure.


American Idol Toys From McDonalds, originally uploaded by DaylandS -I’m a new home owner!.