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Should You Buy A Home In 2011? Check Out These 29 Absolutely Crazy Statistics About The Housing Crisis

April 27, 2011 Comments off

endoftheamericandream

Has the U.S. housing market reached a “bottom” yet?  Are home prices going to start recovering?  Is the housing crisis going to end at some point?  Today there are millions of American families that would like to buy homes but they are not sure what to do.  After all, nobody wants to end up like all the suckers that bought at the top of the market and now owe far more on their mortgages then their homes are worth.  A lot of people are really afraid to take out home loans right now.  So should you buy a home in 2011?  That is a very good question.  The reality is that there are a lot of reasons why home prices could continue to fall.  Unemployment is still rampant, and American families simply cannot afford to buy homes without good jobs.  Also, lending institutions have really, really tightened lending standards.  That is really restricting the number of buyers in the marketplace.  The number of foreclosures Read more…

Seven Reasons We’re Buying a Home and Four Reasons We’re Not

March 28, 2011 Comments off

irvinehousingblog.com

Although the housing bubble and bust may have shattered notions that home prices have nowhere to go but up, Americans haven’t lost their love for owning a home.  In the latest Allstate/National JournalHeartland Monitor poll, homeownership ranked second, just behind raising a family, in people’s definition of the American Dream. Despite new home sales’ drop to a record low, about four-fifths of respondents said that owning a home is still a better financial decision than renting, and nearly nine in 10 homeowners say would buy their home again.

Those results also underscore the extent to which Americans see buying a home as a deeply personal decision. It seems the decision to buy a home is made from the heart, while the decision to rent comes from the wallet.

That is a great way to look at the situation. Most people want to buy and own. Those who look rationally at the costs often chose to rent, not because it’s the most emotionally pleasing choice, but because it’s the most financially sound decision. Those who chose to rent recognize that being house poor is its own form of Read more…

High Gas Prices May Turn Suburbs Into Slums

March 28, 2011 Comments off

discovery.com

suburban sprawl

Americans rarely think much about zoning, but it governs almost every facet of how we live our lives. And unintended consequences of 50-year-old zoning codes may be about to turn some of our loveliest and quietest suburbs into the next slums.

Why? Simply because they’ve been built too far away from everything else, and we won’t be able to afford the gasoline it takes to go to and fro.

Suburbs: slums of the future?

At least, that’s the provocative conclusion of Peter Newman, one of the authors of a study released by the Planning Institute of Australia late last year.

The study looks at the future of suburban Australia, which has evolved in patterns very much like suburban America: sprawling, low-density, auto-dependent residential enclaves miles away from commercial areas and office parks.

“Urban sprawl is finished,” Newman told The Age. “If we continue to roll out new land releases and suburbs that are car-dependent, they will become the slums of the future.”

Following World War II, with the rise of affordable automobiles, cheap fuel and an increasingly Read more…

Stocks Up, Houses Down, And What This Means for Most Americans

February 5, 2011 1 comment

Put your ear to the ground and you can almost hear the bulls stampeding. The Dow closed above 12,000 Tuesday for the first time since June 2008. The Dow is up 4 percent this year after increasing 11 percent in 2010. The Standard & Poor 500 is also up 4 percent this year, and the Nasdaq index, up 3.7 percent.

“The U.S. economy is back!” says a prominent Wall Streeter.

Ummm. Not quite.

Corporate earnings remain strong (better-than-expected reports from UPS and Pfizer fueled Tuesday’s rally). The Fed’s continuing slush pump of money into the financial system is also lifting the animal spirits of Wall Street. Traders like nothing more than speculating with almost-free money. And tumult in the Middle East is pushing more foreign money into the relatively safe and reliable American equities market.

It’s simply wonderful, especially if you’re among the richest 1 percent of Americans who own more than half of all the shares of stock traded on Wall Street. Hey, you might feel chipper even if you’re among the next richest 9 percent, who own 40 percent.

But most Americans own a tiny sliver of Read more…

Home Construction Declines

January 30, 2011 Comments off

By SARA MURRAY

New-home construction dropped in December to its lowest level in more than a year as the feeble housing sector ended 2010 on a weak note.

Private building of new homes dropped 4.3% in December from a month earlier to a seasonally adjusted annual rate of 529,000—the lowest level of housing starts since October 2009, the Commerce Department said Wednesday. The construction industry continued to stumble last year even as economic growth picked up and private-sector job creation returned. Housing starts ended the year 8.2% below December 2009 and there’s little sign building will pick up early this year.

“From what we’ve heard from builders, they’re not very hopeful for Read more…

Home Price Declines Greater than Great Depression

January 21, 2011 Comments off

 

Source – Reuters

(Reuters) – Home prices fell for the 53rd consecutive month in November (the latest data available), taking the decline past that of the Great Depression for the first time in the prolonged housing slump, according to Zillow.

Home prices have fallen 26 percent since their peak in 2006, exceeding the 25.9 percent drop registered in the five years between 1928 and 1933, the housing data company said in a report on Monday. Prices fell 0.8 percent over the month.

It is a dubious milestone for the U.S. housing market which has failed to gain much traction despite a host of government programs to reduce delinquencies and encourage demand with temporary tax credits and lower interest rates. Many economists expect further price drops, even if there are some anecdotal signs of growing demand, such as in pending home sales data.

“For the next six to nine months, the larger factors affecting the housing market that will produce more home price declines will be the excess inventory of homes, high negative equity and foreclosure rates, and weakened demand due to elevated employment, Stan Humphries, Zillow’s chief economist, said in a blog post.

Declines are accelerating, and it will take a while before falling unemployment and other signs of economic improvement support the market, Zillow said.

Home prices fell at a 0.78 percent pace in November, the fastest since February 2009, the company said.