Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
Why PEAK INFLATION is a RED HERRING! Prepare for a Decade Long Cost of Living Crisis - 9th Aug 22
FREETRADE Want to LEND My Shares to Short Sellers! - 8th Aug 22
Stock Market Unclosed Gap - 8th Aug 22
The End Game for Silver Shenanigans... - 8th Aug 22er
WARNING Corsair MP600 NVME2 M2 SSD Are Prone to Failure Can Prevent Systems From Booting - 8th Aug 22
Elliott Waves: Your "Rhyme & Reason" to Mainstream Stock Market Opinions - 6th Aug 22
COST OF LIVING CRISIS NIGHTMARE - Expect High INFLATION for whole of this DECADE! - 6th Aug 22
WHY PEAK INFLATION RED HERRING - 5th Aug 22
Recession Is Good for Gold, but a Crisis Would Be Even Better - 5th Aug 22
Stock Market Rallying On Slowly Thinning Air - 5th Aug 22
SILVER’S BAD BREAK - 5th Aug 22
Stock Market Trend Pattren 2022 Forecast Current State - 4th Aug 22
Should We Be Prepared For An Aggressive U.S. Fed In The Future? - 4th Aug 22
Will the S&P 500 Stock Market Index Go the Way of Meme Stocks? - 4th Aug 22
Stock Market Another Upswing Attempt - 4th Aug 22
What is our Real Economic and Financial Prognosis? - 4th Aug 22
The REAL Stocks Bear Market of 2022 - 3rd Aug 22
The ‘Wishful Thinking’ Fed Is Anything But ‘Neutral’ - 3rd Aug 22
Don’t Be Misled by Gold’s Recent Upswing - 3rd Aug 22
Aluminum, Copper, Zinc: The 3 Horsemen of the Upcoming "Econocalypse" - 31st July 22
Gold Stocks’ Rally Autumn 2022 - 31st July 22
US Fed Is Battling Excess Global Capital – Which Is Creating Inflation - 31st July 22
What it's like at a Stocks Bear Market Bottom - 29th July 22
How to lock in a Guaranteed 9.6% return from Uncle Sam With I Bonds - 29th July 22
All You Need to Know About the Increase in Building Insurance Premiums for Flats - 29th July 22
The Challenges on the Horizon for UK Landlords - 29th July 22
The Psychology of Investing in a Stocks Bear Market - 26th July 22
Claiming and Calculating The Research and Development Tax Credit - 26th July 22
Stock Market Bearish Test - 26th July 22
Social Media Tips and Writing an Effective Call to Action - 26th July 22
Has Rishi Sunak Succeeded in Buying His Way Into No 10 - Fake Tory Leadership Contest - 26th July 22
The Psychology of Investing in a Stocks Bear Market - 26th July 22
Claiming and Calculating The Research and Development Tax Credit - 26th July 22
Stock Market Bearish Test - 26th July 22
Social Media Tips and Writing an Effective Call to Action - 26th July 22
Has Rishi Sunak Succeeded in Buying His Way Into No 10 - Fake Tory Leadership Contest - 26th July 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

US Housing Bust Heading for the Perfect Storm

Housing-Market / US Housing Feb 06, 2008 - 08:53 PM GMT

By: Mark_B_Rasmussen

Housing-Market

Best Financial Markets Analysis ArticleThe following data on the Housing Depression in the City of Reno illustrates that the Peak was 30 – 31 months ago. The historical peak to trough real estate value is 46 months. Then again, the recent past has exceeded anything in history by several orders of magnitude.

For washoe county, there were 69 bank flreclosures for the entire year 2006, 100 for december 2007 and 204 for january 2008.


 

• December had the largest one month price decline on record! 4% avg. Price decline and 7.5% median price decline in one month.

• Number of sales….. Down 50% from august and 14% lower than 01/1998 (not a misprint) when there were far fewer houses and people.

• Jumbo loans > $417,000 increased interest rates 16% - 31% in august. 6,000 homes over $500k sold last in august……Down 43% nationally.

• DOM (days on market) 134 have increased 7% since 01/07.

• Forclosures in Reno/Sparks were up 564% from 01/2007 and were equal to 141% of total mls sales for january 2007……A first. These reo's should be on the market very soon at very resonable prices.

• Notices of default were up 197% from 01/2007 and were equal to 288% of sales for january. Nod's have exceeded mls sales for 6 consecutive months.

• Unsold inventory in the reno/sparks mls is a new record 17.84 months plus considerable new homes completed and under construction.

• Unemployment is 5%........low historically.

• <5.75% 30 yr. Conforming fixed interest rates……..very low historically.

March 2008 is the crest of the reset wave , concurrent with a slowing economy/recession, stricter/contracting credit and declining real estate values…. The Perfect Storm

Well it is election season again and the politicians are buying votes in earnest with the “economic stimulus package”. I have been thinking of what to do with my $600 Bushbate as part of the “economic stimulus package”. I thought of having a big weekend in Fernley, pay 2 weeks health insurance, 1-2 months credit card payments (the national average household balance is $10,000+), 1-2 months gas for the car, food for a month, make 1/4 of a mortgage payment, buy ½ of flat screen T.V., pay for the kids to go to college for a week. I have so many choices I just don't know what to do but am open to suggestion.

Of course, the money to pay for this will be created “out of thin air”, devaluing the existing money in circulation and adding to inflation.

What you are supposed to believe is that businesses are going to expand production and outlets (like Starbucks), purchase new plants, factories, buy new equipment, hire en masse because we have a one time $600 windfall. You don't believe this do you. What about next month? And what is this stimulating anyway?

This is a tacit admission by our government that the average American is spending every penny they make, have squandered their pathetic savings and have borrowed to the extreme limit that insane and reckless credit extension will allow (now over and in reverse). The only way to keep the consumer spending is to give money away. As a destitute and hopelessly addicted credit junkie, I will need my dealer/U.S. government to do this every month.

The U.S. stock markets have lost in excess of $2 trillion in the past 4 months and residential real estate values have lost over $1 trillion over the past year with much more to come, according to Robert Shiller, Yale economics professor and the creator of the CASE/SHILLER Home Price Index.

I think this calls for a group hug with George Bush, Nancy Pelosi and Harry Reid for saving America.

By Mark B. Rasmussen 0

Mark is a real estate appraiser/broker by profession

Copyright © 2008 Mark B. Rasmussen

Mark B Rasmussen Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in