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

To: Travis_Bickle who wrote (239180)	2/24/2010 8:58:15 AM
From: Smiling Bob	Read Replies (1) \| Respond to of 306849

Calm seas ahead because nearly 25% of current homeowners will eventually need a new place to live and the gubba mint will pay HBs to build them one. -- Nearly 25% of all mortgages are underwater cnnmoney By Les Christie, staff writer , On Wednesday February 24, 2010, 8:14 am More bad news on the housing bust front: Nearly 25% of all mortgage borrowers were underwater, meaning they owe more on their loans than their homes are worth. First American CoreLogic, the research firm that monitors housing equity, reported Tuesday that 11.3 million homeowners -- or 24% of all homes with mortgages -- were underwater as of the end of 2009. That's up from 23% and 10.7 million borrowers three month earlier. Nevada was the state with the worst record at 70% of all mortgaged properties underwater. That was followed by Arizona (51%), Florida (48%), Michigan (39%) and California (35%). For many homeowners, being underwater, also know as negative equity, has few consequences. If they're not planning to sell and can afford their monthly bills, they can wait out the downturn. For others, however, plunging underwater can spell disaster. If they become unemployed or have a financial emergency, they have no equity to tap. Or, if they need to downsize or sell their home to relocate for a job, they can't. "Negative equity is a significant drag on both the housing market and on economic growth,"said Mark Fleming, chief economist with First American CoreLogic. "It is driving foreclosures and decreasing mobility for millions of homeowners." Traditionally, being underwater was one of two main factors in determining a borrower's likelihood of foreclosure. The other is having sufficient income to pay bills. But, there's an increasingly important exception: strategic default. As equity gets more and more negative, some homeowners are choosing to quit paying and give the keys to the bank. As long as negative equity remains a big problem, it will be difficult to stem the tide of foreclosures that continue to plague many local real estate markets around the nation. "Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come," said Fleming. Copyright © 2010 Cable News Network and Time Inc. and their affiliated companies. All Rights Reserved

To: Travis_Bickle who wrote (239180)	2/24/2010 10:04:13 AM
From: MulhollandDrive	Read Replies (2) \| Respond to of 306849

oh yeah, calm indeed....more like dead in the water: U.S. NEW-HOME SALES FELL 11.2% TO 309,000 PACE IN JANUARY U.S. new-home sales fall to record-low level* WASHINGTON (MarketWatch) - Sales of new U.S. homes plunged 11.2% in January to a seasonally adjusted annual rate of 309,000, the lowest rate on record dating back to 1963, the Commerce Department estimated Wednesday. Economists surveyed by MarketWatch forecast sales to rise slightly to 355,000, with buyers taking advantage of a new federal tax credit. Sales in December were revised higher to 348,000 from 342,000 previously reported. Sales are down 6.1% compared with January 2009's 329,000, which was the previous record-low rate. The number of homes for sale rose 0.4% to 234,000 in January. At the January sales pace, it would take 9.1 months to sell that inventory.