Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (87596)	8/29/2007 9:00:49 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

How do they propose the inventory of new homes be worked off when they predict starts of 1.14 million and sales of .67 million? Builders will still build almost twice as many homes as they sell next year, adding 470,00 more excess houses? Or are they saying the situation will continue to deteriorate through all of 08?

To: CalculatedRisk who wrote (87596)	8/30/2007 1:08:41 AM
From: patron_anejo_por_favor	Respond to of 306849

Clearly a devastating drop, and I think they're understating it just a bit. 10% in '07 and 10-15% in '08 would not surprise me, depending on how desparate the Fed and Clowngress decide to get. Put it this way, if gold has not broken $1000 by election day, we'll get 10-10.<NG>

To: CalculatedRisk who wrote (87596)	8/30/2007 1:28:04 PM
From: MulhollandDrive	Respond to of 306849

CR, what is your take on the OFHEO number released today? median prices just beginning to reflect the rolling over of housing prices? money.cnn.com OFHEO: Lowest Quarterly US Home Price Appreciation In 13 Yrs Dow Jones August 30, 2007: 10:38 AM EST WASHINGTON -(Dow Jones)- U.S. house prices appreciated 3.2% in the second quarter of 2007 from a year before, the Office of Federal Housing Enterprise Oversight reported Thursday. Ofheo said prices rose only 0.1% in the second quarter from the first quarter, the lowest quarterly increase since 1994. "House prices were basically flat in the second quarter despite tightening credit policies, rising foreclosure rates, and weakening buyer sentiment," Ofheo director James Lockhart said. "Significant price declines appear localized in areas with weak economies or where price increases were particularly dramatic during the housing boom." Ofheo reported that housing markets were the strongest in western states. From the second quarter of 2006 to the second quarter of 2007, house prices rose on average 15.3% in Utah, 12.8% in Wyoming, 9.1% in Washington, and 9.1% in Montana. But some other western states performed poorly. On average, prices fell 1.5% in Nevada over 12 months, 1.4% in Michigan, 1.4% in California, and 1.0% in Massachusetts. Ofheo's data are collected from mortgage purchases by Fannie Mae and Freddie Mac and therefore does not include jumbo loans, which are products those companies are not allowed to buy. Ofheo said that of the 20 poorest performing markets, 18 were in Florida and California. In total, 14 states saw price declines in the second quarter from the first quarter. The worst performing state for the quarter was Rhode Island, where average prices fell 1.74% from the first quarter to the second quarter. -By Damian Paletta, Dow Jones Newswires, 202-862-9241; Damian.Paletta@ dowjones.com