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Housing Recovery Likely This Year, But Timing Isn't Clear »

Posted by: Deidre 1 year, 5 months ago

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Unusual weather patterns and problems in the subprime lending marketplace are creating challenges in assessing housing market conditions, but a recovery is likely this year, according to the latest forecast by the National Association of Realtors(R).

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Comments So Far: 21

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Justice4All1 year, 5 months ago

Did anyone notice the source on this? It's from the National Association or Realtors. When did they ever predict a price decrease? They always forcast rising prices and usually add that we better buy now while prices are low.
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  invest071 year, 5 months ago
  
  You are correct to be suspicious of the source of any study.
  For years the tobacco companies paid hired guns huge sums of money to avoid lawsuit payouts. They produced reams of "scientific" studies that proved tobacco was not harmful to health.
  As late as 1992 "scientific" studies were being published which said a new ice age was right around the corner.
  You should be suspicious of people like Al Gore who say that any science that disputes his position is biased. Maybe it is Gore's side that is biased.
  I still have faith in science. It is the scientists I no longer trust.
  
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    KingOfTruth1 year, 5 months ago
    
    The headline is sort of like this one...Rain Likely This Year, But Timing Isn't Clear....
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cleare1 year, 5 months ago

well, generally they are right. real estate prices usually do go up over time.
i think it largely depends on location...
location...
location...
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Fiatlux1 year, 5 months ago

Well here in California the prices have always been extreamly high. I have even seen a "Shack" go for over a million dollars. I have seen reports of the market continueing to drop and the market rebounding in time for summer. But rememeber. A real estate agent wants the market to go up. Drives their commissin up, so why would'nt they say things are going to get better?????
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PilotSmall1 year, 5 months ago

I think as a banker the RE agents are not only self serving but way, way wrong! The economy is much worse trouble than the the public knows and no....house prices will NOT rebound this year in most markets. In many markets the bottom has not even been reached. Already the banks are reluctant to repo becuse there is already an over capacity in repo's inventory that can not be sold. This article is simply BS!
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invest071 year, 5 months ago

Sales prices of houses rose at an unprecedented rate from 2003 to late 2005. During this run-up an important barrier was crossed: in many markets, the median sale price became to high for the person with the median income to buy.
A recovery is on the way but my guess is full recovery is years away. Personal incomes will have to rise over time before housing values will rise again.
This is basic economics: People can't buy what they can't afford.
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engineer1 year, 5 months ago

With the default rate as high as it is this article shoes that there are a lot of people who believe in tooth fairies.
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adman1 year, 5 months ago

"...according to the latest forecast by the National Association of Realtors(R)."
Say no more.
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Leemck021 year, 5 months ago

Prime lending and weather? What about earning power? GM, Ford and Chrysler falling from the Big Three to something out of 8. The nation is seeing to many companies closing and to few starting. Working people with minimum wages if working at all aren't promising mortage risks. Of course investors and big money are doing well but not all houses are in that bracket. The market will be back when small businesses get the emphasis they need, not when the storms and winds cease.
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  tommmmie1 year, 5 months ago
  
  In 1967 when I purchased my 1st car, a pontiac firebird, new, for $3,200 I was earning $30,000 a year. A new firebird today costs $32,000, so I should be making $300,000 a year, Yeah! right! Is something wrong with this picture. A new home back then sold for $27,000.
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JenMurdock1 year, 5 months ago

I'll believe THIS crap when I see it! We've been trying to sell a cheap house for 3 years, and NO ONE can get the money for it. Everyone down here is bankrupt.
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NelsonR1 year, 5 months ago

The National Association of Realtors. Now that says it all. Reminds me of Hitlers proproganda machine at work.
What do they care if the market continues it obvious and delayed downfall. They still need that 6% commission to live their lifestyle. Remember Ken Lay saying to his employees how everything is rosey and then within a week the bottom with the truth prevailed. All lies yet done with a certain logic and charisma behind it.
Gosh, I hate proprogandist that continue to espouse lies for their own benefit. Get a grip on reality, America is on to you (NAR) and the Bush Administration.
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keinkampf1 year, 5 months ago

It's interesting that the stories posted today point both ways--this one toward a recovery of the housing market later this year and the other one toward another Great Depression starting later this year, with millions of people put out of their houses by their bankers--depending on who is writing the story and how they hope to profit from it. The National Association of Realtors wants to keep people in the market, and is making guardedly rosy predictions. Populist and his friends profit politically from fear of a collapse, and are predicting that. Unfortunately, I suspect that Populist and his friends are closer to the truth in this case.
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NelsonR1 year, 5 months ago

keinkampf - I for one do not get a dime other than self satisfaction in pointing out facts.
Personally, I was baffled and amazed at the longevity of the continued Bull Market. I knew interest rates were a governing factor, why so low for so long? There had to be reasoning behind this facet of Banking. The average American was not keeping pace with inflation nor were they prevented from their continued spending. Now lets take the trade imbalance into consideration. China has been averaging a six plus percentage balance of trade surplus with America per month. You cannot continue this pardody. The house of cards will fall.
Now the bankers, credit card companies and housing have benefitted by loaning money to attract interest and loan fees. Hell, they were getting rich. Now lets take into consideration outsourcing of American jobs and the proliferation of illegals. I could go on and on but have I not said enough. The rich became richer while Amrica suffered by its greedy.
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  capecoralM1 year, 5 months ago
  
  Are you one of the people who constantly calls for the downfall of the Evil Profiteering Corporations? Why are people surprised when they go someplace else. What do you have against the National Association Of Realtors? Why to you liken them to Hitler. Just curious. DO you feel the same way about say the National Rifle Association or the National Association Of Broadcasters? What is it about business' in general that you hate so much. DO you feel all business owners are greedy or is it capitalism in general?
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NelsonR1 year, 5 months ago

capecoraliM - O.K. I will try and answer. I have been in the real world, Real Estate, Banking and other endeavors so I observed reality.
Money, the bottom line of all. Simple as that. It is not the consideration for the buyer/borrower, it is the profit margin that can be obtained from the individual. Loaning or selling a person a 100 percent loan is outrageous and predictable for most, a default. Now the banker makes the loan fees and passes the paper off to Fannie Mae or Freddie Mac, they don't care if its sound. The realtor gets his six percent commission regardless. As a realtor I did quite well but the abuses that occurred between realtors, for the commission was putrid.
Any inane could see, refer you to my above post, that the market was not sustainable at current levels. Change was in order but all America got was a continued shill, a fraudulent and scam market place perpetuated by a greedy wall street and their monetary manipulations.
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  capecoralM1 year, 5 months ago
  
  Sounds like you were pretty much the bone stripper in your day. I do run across some people in the business who have that same attitude that you have toward conducting your business transactions. You know like you describe in your above post. Me me me. They don't last long in the business world. All of their deals are one timers. They don't have clients that come back time after time and send referrals. They don't get to know each person they deal with. They are not honest and trustworthy and considered consultants and trusted adviser by their clients. Industry people look upon them as a disgrace to the banking and real estate profession. I am sorry to hear that is how you conducted your business. Fortunately it has been my experience that this is a minority of people conducting business in the banking and real estate profession. In my opinion it is about creating relationships and trust and the money part will take care of itself. Win-Win is alive and well thankfully. Glad your out.
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    capecoralM1 year, 5 months ago
    
    Think about this.
    More homes, privately owned homes and land, were purchased by US citizens in the past 3 years than at anytime ever in the history of the world. How many homes were sold in the last 3 years alone?
    How many people in the United States have a mortgage on a private home or own their home outright? If we have 100,000 foreclosures this month can you tell me what percentage of all home owners in the United States Of America are defaulting on their home.
    Q. What is the foreclosure rate in the form of a percentage of US homeowners and Mortgages vs foreclosure in percentile terms ?
    Q. How many Outstanding Mortgages in the US vs Foreclosures
    Q. Historically speaking is this number high or low? Why?
    
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tommmmie1 year, 5 months ago

The items that need to be remembered is construction costs, and remodeling costs. It cant sell for less than it costs to build it. The sale price of a house also depends on location. If the house is located on a main highway or near train tracks or factories, forget about it. If it is located in a prime, nice neighborhood, with good schools and employment, it sells quick. Sometimes bidding still takes place, and it sells for more. If the market was selling below the average for the general area before the price increases, you still have a windfall when it sells. I bought mine for $140K 10 years ago. 5 bedr. Spa room w/ sunken hot tub , liv. rm., din. rm. kitch., 3 baths, rec. rm.rm with wet bar. foyer 2 decks 4 car garage. 3700 sq. ft. ranch. 20 yrs. old. Sells in my location for $275k.
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zin01an1 year, 4 months ago

What is so base, is that it much of the downturn, as it picks up will be due to uneducated people being fed a fish story to get loans that they never have been given. I just hope that these uber high interest loans, which wind up causing foreclosure...I hope history remembers that is what precipitated the housing downfall.
http://www.competinglenders.co.uk

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