Another one bites the dust.....

[Chasey_Lane]

I wonder why all these agents are crying the blues, then?

We need to get Christy in here to give us the scoop.

Honestly, I believe it is a buyer's market. However, if a buyer finds a home they really want, they'll pretty much offer the world to have it.

 

[somdrenter]

Another point, The numbers I posted above are ACTUAL numbers for sales in St. Marys county for June of 07 and June of 06. True they show a decrease in number of homes sold and an increase in number of days on the market. But they also show an INCREASE of more than 8% in the average sales price in a single year. I stand by my original statement. Home sales have slowed, but values are not dropping. Er, at least not in St. Marys county...

The appraisals of my own properties were simply an example.

And if you where to continue in the same vein, you would see that prices are flat for the last seven months. Also, inventory is at record highs. This selling season was a bust, and the EZ financing is drying up.

And as far as your appraisals go, I’m not surprised, given the rampant appraisal fraud and pressure from the REI to inflate the numbers.


"90 Percent of Appraisers Feel Pressure to Inflate Home Values
Mar 23, 2007 -- Inflated home appraisals helped drive up home prices across the country to levels that couldn't be sustained. A new study finds that 90 percent of appraisers now feel pressure to inflate home values. Some are even being asked to turn in appraisals without looking for a home. Those who don't cooperate face negative ramifications from clients and employers alike.

A recent national survey conducted by October Research Corp. found that 90 percent of appraisers feel pressure to turn in inflated home appraisals. This includes appraisals for both new home purchases and refinances. The number is up from 64 percent in 2003."

http://efinancedirectory.com/articl...ers_Feel_Pressure_to_Inflate_Home_Values.html

 

[Lugnut]

And if you where to continue in the same vein, you would see that prices are flat for the last seven months.

Here's a bit more information for anybody interested.

Average Sold Price:

Jun 2007 $367,350
May 2007 $373,281
Apr 2007 $349,433
Mar 2007 $350,559
Feb 2007 $351,826
Jan 2007 $346,501
Dec 2006 $366,799
Nov 2006 $337,248
Oct 2006 $319,540
Sep 2006 $356,521
Aug 2006 $334,951
Jul 2006$ 353,031
Jun 2006 $339,138
May 2006 $337,753
Apr 2006 $328,094
Mar 2006 $352,320
Feb 2006 $303,533
Jan 2006 $315,466
Dec 2005 $325,740
Nov 2005$340,150
Oct 2005 $329,112
Sep 2005 $331,495
Aug 2005 $333,462
Jul 2005 $323,737
Jun 2005 $323,274
May 2005 $309,730
Apr 2005 $307,942
Mar 2005 $266,427
Feb 2005 $286,877
Jan 2005 $278,472
Dec 2004 $289,716
Nov 2004 $286,378
Oct 2004 $282,193
Sep 2004 $249,739
Aug 2004 $253,787
Jul 2004 $254,176
Jun 2004 $265,471
May 2004 $246,747
Apr 2004 $238,165
Mar 2004 $224,182
Feb 2004 $ 224,679
Jan 2004 $210,495
Dec 2003 $229,813
Dec 2003$220,261
Oct 2003 $225,065
Sep 2003 $ 223,604
Aug 2003 $219,727
Jul 2003 $211,064

 

[somdrenter]

Here's a bit more information for anybody interested.

Did you forget inventory?:

May-03 280
Jun-03 273
Jul-03 238
Aug-03 244
Sep-03 232
Oct-03 244
Nov-03 235
Dec-03 206
Jan-04 192
Feb-04 186
Mar-04 222
Apr-04 231
May-04 235
Jun-04 248
Jul-04 342
Aug-04 281
Sep-04 270
Oct-04 273
Nov-04 209
Dec-04 277
Jan-05 219
Feb-05 299
Mar-05 293
Apr-05 281
May-05 280
Jun-05 310
Jul-05 337
Aug-05 359
Sep-05 374
Oct-05 380
Nov-05 447
Dec-05 439
Jan-06 449
Feb-06 488
Mar-06 557
Apr-06 610
May-06 672
Jun-06 760
Jul-06 765
Aug-06 748
Sep-06 766
Oct-06 771
Nov-06 796
Dec-06 745
Jan-07 745
Feb-07 763
Mar-07 813
Apr-07 899
May-07 933
Jun-07 928

 

[somdrenter]

Or, how about an ARM reset schedual?:

http://misstrade.files.wordpress.com/2007/03/arm_resets.JPG

 

[somdrenter]

American Home Mortgage to close on Friday

NEW YORK, Aug 2 (Reuters) - Mortgage lender American Home Mortgage Investment Corp (AHM.N: Quote, Profile , Research) is closing its doors on Friday, and has told employees they will be laid off, according to Newsday, citing an e-mail to employees from Chief Executive Michael Strauss.

The company said on Tuesday it could no longer fund home loans and might sell off its assets, after its lenders cut off access to credit. It said on its Web site it is no longer accepting home loan applications.

"Bankruptcy is the next logical step for them," said Steve DeLaney, analyst at JPM Securities in Atlanta.

American Home would be one of at least 50 mortgage lenders to shut its doors or sell itself as U.S. housing prices have slumped and home loan delinquencies have jumped.

http://today.reuters.com/news/artic...72_RTRIDST_0_AMERICANHOMEMORTGAGE-CLOSING.XML

 

[Lugnut]

Did you forget inventory?

No. And I don't see your point.

If sales volume were dropping and "inventory" was starting to stack up, I'd be looking for causes.

I'm not worried about low "inventory" (I'm not a realtor). Low "inventory" is a GOOD thing for sellers. Particularly when the numbers show housing values are continuing to climb.

 

[somdrenter]

No. And I don't see your point.

If sales volume were dropping and "inventory" was starting to stack up, I'd be looking for causes.

Over 8 months of inventory. I'd call that stacked up and so would most in the industry. Sales are flat, prices are flat, and inventory is up. Nothing to se here folks, move along.

 

[Lugnut]

Over 8 months of inventory. I'd call that stacked up and so would most in the industry. Sales are flat, prices are flat, and inventory is up. Nothing to se here folks, move along.

My apologies, I skimmed your inventory post too quickly and thought 2007 was at the top. Inventories are indeed up with volume dropping.



Inventory increasing, sales volume decreasing, yet value is still increasing...

Time to go do some more reading.

 

[somdrenter]

Jim says "Just walk away"

http://www.youtube.com/watch?v=c7e9H4zTqk4

 

[Chain729]

My apologies, I skimmed your inventory post too quickly and thought 2007 was at the top. Inventories are indeed up with volume dropping.



Inventory increasing, sales volume decreasing, yet value is still increasing...

Time to go do some more reading.

Dropping prices HERE are just over the horizon. The formula always balances out eventually; basic economics.

And Vrai, I would say that you're trying to compare national numbers with a local market. Apples and oranges sweetheart.

IIRC, prices in St. Mary's also soared well above the national average during the boom because of factors that entire nation, as a whole, doesn't have. Things like an influx of people due to BRAC. Wait till the shuffling is done: People have settled in, investors have cashed out, and developers have increased available homes.

Also, for our dear Luggy, homes at different price ranges fair differently. I know where his TH is and what the value of homes in the area are. His particular price range is currently fairing better due to a MUCH lower supply and a higher demand.

Side Note: It's the same for a place like Detroit where you can buy houses cheaper than you can a new car because when the auto-makers tanked, the sector that employed a sizeable chunk of people, laid people off by the thousands. No jobs = no money = can't survive = no live there = houses are worthless.

 

[Chain729]

There are a few paragraphs in this article y'all might find of interest, considering the original topic.

 

[somdrenter]

No No, you misunderstood, I said WALK AWAY

http://video.google.com/videoplay?d...l=2&start=0&num=10&so=0&type=search&plindex=0

 

[dn0121]

Was great for me because I just moved here and was able to get a house with built in equity. Previous owner was over spent and had to get out.

I know that about a year ot so ago they were doing alot of the negative amoritization loans, lending up to 120%, I feel quite confident that ALOT of those loans went into foreclosure. They were lending 120% thinking values were going to keep increasing and they did not. So now these homeowners have loans higher than the value of the house and can't even refi out of it to save their butts. :shrug: I guess thats what happens when you get greedy. Granted the negative am loans were great for investors and such, but just for the regular joe blo who saw it as a way to get more house for smaller payments it was a disaster waiting to happen.

 

[somdrenter]

Was great for me because I just moved here and was able to get a house with built in equity. Previous owner was over spent and had to get out.

Did they get out with a short sale or foreclosure?

 

[dn0121]

No just decided he didn't want the mortgage anymore and took an offer to break him even. I saved a ton, and he got his loans paid off.

 

[somdrenter]

I swear they are falling like flies.....Kinda scary.

Capital One Closing Mortgage Unit

By MIKE BAKER
The Associated Press
Monday, August 20, 2007; 7:01 PM

-- Capital One Financial Corp. said Monday it will cut 1,900 jobs and shutter its wholesale mortgage banking business, a move that comes as lenders continue to struggle in the nation's housing and mortgage markets.

Capital One said it will shut down GreenPoint Mortgage and eliminate most of the jobs by the end of year. The McLean, Va.-based company will close 31 GreenPoint locations in 19 states and "cease residential mortgage origination" effective immediately but said it will honor commitments to customers with locked rates who have loans already in the pipeline.

"Over the past few months, we have experienced an unprecedented disruption in the secondary mortgage markets," Capital One Chairman and Chief Executive Officer Richard D. Fairbank wrote in an internal memo to employees. "I made the decision to wind down the business with a heavy heart."

GreenPoint, based in Novato, Calif., specializes in no-documentation and Alt-A mortgage loans for borrowers with slightly better credit than subprime borrowers. In his memo, Fairbank said that market has seen a "significant reduction in liquidity and continuing volatility."

 

[somdrenter]

Former Subprime Leader Ameriquest Closes

Saturday September 1, 12:25 am ET
By Gary Gentile, AP Business Writer
Former Subprime Leader Ameriquest Closes Amid Sale of Parent to Citigroup

LOS ANGELES (AP) -- Ameriquest Mortgage Co., once the nation's largest subprime lender, will close with barely a whimper, after the other assets of its parent company were sold Friday to Citigroup Inc.

Ameriquest, which saw its fortunes soar during the housing boom by lending to people with less than stellar credit, is the latest victim of a mortgage crisis that has left bankrupt companies and cash-strapped borrowers in its wake.

Along with shuttering Ameriquest, Orange-based ACC Capital Holdings also said it was selling its wholesale mortgage origination operation and a mortgage servicing business to Citigroup for an undisclosed sum.

"ACC Capital Holdings is going to maintain operations as it prepares for the orderly wind-down of our retail mortgage business, which is no longer accepting applications," the company said in a statement.

Ameriquest was once so successful it paid millions of dollars to tack its name onto the Texas Rangers' baseball park.

However, it stopped taking new mortgage applications Aug. 1, ACC disclosed late Friday.

http://biz.yahoo.com/ap/070901/citigroup_acc_capital.html?.v=2&printer=1

 

[somdrenter]

Countrywide to Cut Up to 12,000 Jobs

http://biz.yahoo.com/ap/070907/countrywide_job_cuts.html?.v=3

 

[somdrenter]

IndyMac to Cut 10 Percent of Jobs; May Post a Loss

http://www.bloomberg.com/apps/news?pid=20601087&sid=aIu6f8wtzyn4&refer=home