Friday, September 30, 2005
Tuesday, September 27, 2005
Has the real estate market peaked?
Sales are down 9.9% and the supply of homes ever increasing.
http://www.marketwatch.com/news/story.asp?guid=%7B1A657D49%2DB058%2D4F20%2D9F7A%2DD4AB6C464AE1%7D&siteid=mktw
Greenspan comments on Housing Market
Greenspan Talks on Housing: To the ABA convention... Greenspan comments on housing market being driven by speculators and that "froth" may be affecting mortgage markets. Also, indicating homeowners should be able to absorb a drop in prices. Greenspan says housing trouble may lie in "exotic" mortgaging instruments, which can be dangerous in a rising rate environment. The housing market has seen a median 15.8% bump in prices over the past year, according to Bloomberg data. The Fed chief notes that certain locations are seeing "unsustainable" home prices. He notes that second homes are behind skyrocketing housing prices, and the variable mortgage instruments need "ongoing scrutiny." Most homeowners have sufficient "equity cushion[s]." He says, however, that it is not clear whether the housing market is "moderating," and acknowledges there may be localized problems in certain market areas.
Monday, September 26, 2005
Thursday, September 22, 2005
Monday, September 19, 2005
Friday, September 16, 2005
Tuesday, September 13, 2005
Friday, September 09, 2005
Tuesday, September 06, 2005
Grandich's take on the housing bubble
Here are the latest words from Peter Grandich concerning the housing bubble within the Blue Chip & Income Report.
"Bubble or not, the residential real estate market is playing an ever larger role in the health of our domestic economy. Since 2001, two out of every five jobs created in the private sector have been tied to the real estate boom, according to a Merrill Lynch economist. What’s more, 70 percent of the rise in household net worth in recent years can be attributed to gains in home values. Americans used to consider their home a nest egg. Now the home appears to many as a magical ATM machine.
"Homeowners doubled the amount they took out of their home in cash this quarter compared to the same quarter last year. That cash-out figure was 16 times more than back in the mid-1990s. What short memories some people have. I remember how so many people felt after the stock market tanked in the new millennium, stating how they were foolish to be so much in the stock market. Now many of those very same people tell me this time it’s different- they’re in real estate! Oh boy...."