Dear folks who wish you owned your own home

[somdrenter]

Know how much a bubble home is worth in CA?

About this much:




Now that is extreme home makeovers.

 

[Pete]

It is not exactly as you are portraying it. The bank decided it was cheaper to destroy the partially built homes than it was to pay the daily code enforcement fines and finish them and then sit on them until they sold. Since it looks like a subdivision it would not even be as simple as finish them and sell them cheap. The bank would be on the hook to develop and pave roads, storm water management, street lighting, utilities, landscaping, errosion control and so on.

It is not like they are destroying people ready homes in a viable subdivision.

 

[BoyGenius]

About this much:

Now that is extreme home makeovers.

When they get done can you send them down to Ridge?

16420 Pine Street

 

[somdrenter]

It is not exactly as you are portraying it. The bank decided it was cheaper to destroy the partially built homes than it was to pay the daily code enforcement fines and finish them and then sit on them until they sold.

Soooooooo , the homes are worth more to the bank razed, than standing. And this would be portrayed as…??

 

[BoyGenius]

Colony Square Town Houses

Rogers Drive, Lexington Park, year built 1974:

Initial Sales Price: Unknown

High Price Point: 10/2006, Price: $155,000

Low Price Point: 02/1999, Price: $43,015

Current Foreclosure Asking Price: $35,000

Tax Assessment: $149,130 (Uh Oh Mr. Tax Man!)

Rogers Drive

A favorite killing ground during the bubble for the home flippers.

 

[somdrenter]

Homes: Almost 20% cheaper

You are TOTALLY not going to get that kind of deal a year from now.

S&P/Case-Shiller index reports huge decline of 19.1% for the first quarter

By Les Christie, CNNMoney.com staff writer
Last Updated: May 26, 2009: 9:48 AM ET


NEW YORK (CNNMoney.com) -- The home price slide accelerated during the first three months of 2009, according to a report issued Tuesday.

The S&P/Case-Shiller National Home Price index, a bellwether of real-estate market direction, plunged a record 19.1% during the quarter compared with the first three months of 2008. That followed an 18.2% drop last quarter.

The Case-Shiller 20-city index dropped 18.7% year-over-year, also a record. It fell 18.5% during the last three months of 2008. This index has plummeted 32.2% from its July 2006 peak and has fallen 32 straight months.

The national index covers almost all homes sold throughout the United States and is reported quarterly, while the 20-city index reports sales in 20 major metro areas and represents a cross section of the national market. The 20-city index comes out every month.

"Declines in residential real estate continued at a steady pace into March," said David Blitzer, chairman of the Index Committee at Standard & Poor's in a prepared statement. "All 20 metro areas are still showing negative annual rates of change in average home prices with nine of the metro areas having record annual declines."

Home prices plunge almost 20% - May. 26, 2009

 

[Pete]

Soooooooo , the homes are worth more to the bank razed, than standing. And this would be portrayed as…??

No, you evidently did not read the article nor my post. I suspect you did but you are ignoring the point on purpose because it defeats the intent of your post. These partially built buildings are less a liability (it is cheaper) to the bank razed than to pay the daily, weekly or monthly code violation fines and complete them then sit on them until they sold at a discounted price in this market.

 

[somdrenter]

No, you evidently did not read the article nor my post. I suspect you did but you are ignoring the point on purpose because it defeats the intent of your post. These partially built buildings are less a liability (it is cheaper) to the bank razed than to pay the daily, weekly or monthly code violation fines and complete them then sit on them until they sold at a discounted price in this market.

I agree Pete, I agree.

 

[somdrenter]

Hidden Inventory

Are Banks Keeping Foreclosed Homes Off the Market?
Posted by: Chris Palmeri on May 21

Buyers looking to purchase foreclosures should still have plenty of opportunities. Only 30% of bank-owned properties are listed on the multiple listing services, says Rick Sharga, senior vice president at foreclosure listing firm RealtyTrac. He figures banks still own as many as 500,000 properties that they want to sell but haven’t put on the market.

A home many not be listed because the bank is wrestling with title, repair or owner right of redemption issues. (Several states such as Michigan and Wisconsin give the previous owners the chance to buy back a home that’s been foreclosed on). Banks may also be holding houses off the market because selling them now would lower prices even further. Foreclosures typically sell at a 31% discount to similar homes whose owners aren’t in distress. Listing all those homes now, Sharga says, “would have a devastating impact on inventory and pricing.”

Are Banks Keeping Foreclosed Homes Off the Market? - BusinessWeek

 

[Larry Gude]

Home prices plunge almost 20% - May. 26, 2009

Not good.

 

[somdrenter]

Not good.

The Dow is climbing, consumer confidence has had an uptick, bailouts are being handed out and housing is becoming more affordable every day. What’s “not good”?

 

[Larry Gude]

The Dow is climbing, consumer confidence has had an uptick, bailouts are being handed out and housing is becoming more affordable every day. What’s “not good”?

The lost value. The DOW at 8600 sounds great. Unless you were in at 12,000

 

[somdrenter]

Mortgage delinquencies hit record high in Q1

May 28, 2009

BY ASSOCIATED PRESS
NEW YORK---- An industry report shows that a record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit.

The Mortgage Bankers Association said Thursday the foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process.

Mortgage delinquencies hit record high in Q1 :: CHICAGO SUN-TIMES :: Business

 

[Vince]

The Dow is climbing, consumer confidence has had an uptick, bailouts are being handed out and housing is becoming more affordable every day. What’s “not good”?

So when are you buying your first home?

 

[somdrenter]

So when are you buying your first home?

For what? Old times sake? The weather would be a bit nicer, but the commute would be a killer.

 

[somdrenter]

Phantom Homes

Carl Gutierrez, 07.02.09, 05:30 PM EDT
Hundres of thousands of foreclosed homes are hidden from the market's eye.

There is a "phantom inventory" in the United States housing industry, hidden from the eyes of analysts and investors, and distorting the market's landscape.

Steven Hagenbuckle, managing principal at TerraCap Partners, a distressed real estate private equity fund, expects to see the beginning of the release of the phantom inventory in the next 90 to 180 days, though the inventory influx will come in different waves throughout the country.

The hidden inventory is composed of REOs, or "real estate owned", properties. Hagenbuckle found that between May 2008 and May 2009, there were a total of 3,734,711 foreclosure filings, and of those total filings, 26.4%, or 985,571, were REOs, These homes are otherwise hidden from view, while the rest are listed to the public through the multiple listing service, or "MLS", system.

In the case of REOs, banks will takeover foreclosed properties, sell the blocks to interim investors who then sell it to the homeowner. For example, a bank will take 50 bad residential properties, and bundle them together at a discount from anywhere between 40 to 60 cents on the dollar, and put them out for bid as a package. Ostensibly, a large number of sales could occur, but the market wouldn’t know about it because it's hidden from the view of normal public channels.

Phantom Homes - Forbes.com

 

[somdrenter]

More Prime Borrowers Delinquent on Mortgages

Spreading Problem: More Prime Borrowers Delinquent on Mortgages

By Nick Timiraos
Mortgage delinquencies show few signs of slowing down, according to data from an industry-wide coalition of mortgage investors and servicers.

The number of mortgages that were 60 days or more late reached 5.65% in May, which makes for the highest level on record and up from 5.48% in April, according to the Hope Now Alliance, the private-sector alliance of mortgage servicers and investors. Foreclosure starts surged after pausing earlier this year as various states and lenders held back foreclosures through various moratoria. Some 257,000 homes entered the foreclosure process, up 5.7% from April and 34% from one year ago.

The May figures show how the housing market distress has eased for subprime borrowers while it continues to accelerate for prime borrowers. Subprime foreclosure starts fell by 16% from one year ago, even as prime foreclosure starts jumped by 83%. Housing analyst Ivy Zelman notes that an “incremental weakening in prime mortgages are likely to result in a pick-up in higher-priced foreclosures hitting the market in late 2009/early 2010.” That could put more downward pressure on the higher end of the housing market.

Spreading Problem: More Prime Borrowers Delinquent on Mortgages - Developments - WSJ

 

[Tilted]

According to John Burns Real Estate Consulting, the rental gap has now turned negative (nationwide average), and is very much negative in some real estate markets. In other words, it is now more affordable to own than to rent. The rental gap had averaged around +$400 since 2001.

Other metrics that I've seen have suggested that mortgage payments, relative to rent, have gotten back to more historically normal levels - as opposed to the very high levels that were seen around 2004 - 2006.

In short, the affordability of homes in America is about back to where it should be - to a tenable level. Obviously though, there is still a great deal of variation, in that regard, between different markets.

 

[Larry Gude]

According to John Burns Real Estate Consulting, the rental gap has now turned negative (nationwide average), and is very much negative in some real estate markets. In other words, it is now more affordable to own than to rent. The rental gap had averaged around +$400 since 2001.

Other metrics that I've seen have suggested that mortgage payments, relative to rent, have gotten back to more historically normal levels - as opposed to the very high levels that were seen around 2004 - 2006.

In short, the affordability of homes in America is about back to where it should be - to a tenable level. Obviously though, there is still a great deal of variation, in that regard, between different markets.

In addition to that, I just read a piece somewhere that did a survey suggesting that the majority of renters still do not own their home. Margin of error was, if I recall, about 0%.

 

[Beta84]

In addition to that, I just read a piece somewhere that did a survey suggesting that the majority of renters still do not own their home. Margin of error was, if I recall, about 0%.

What are you talking about? I own the place I am currently renting!

I'm just going to be a nice guy and donate it back to them when I don't need it anymore