Best of the Week
Most Popular
1.US Paving the Way for Massive First Strike on North Korea Nuclear and Missile Infrastructure - Nadeem_Walayat
2.Trump Reset: US War With China, North Korea Nuclear Flashpoint - Video - Nadeem_Walayat
3.Silver Junior Mining Stocks 2017 Q2 Fundamentals - Zeal_LLC
4.Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - Nadeem_Walayat
5.The Bitcoin Blueprint To Your Financial Freedom - Sean Keyes
6.North Korea 'Begging for War', 'Enough is Enough', is a US Nuclear Strike Imminent? - Nadeem_Walayat
7.Bitcoin Hits All-Time High and Smashes Through $5,000 As Gold Shows Continued Strength - Jeff_Berwick
8.2017 is NOT "Just Another Year" for the Stock Market: Here's Why - EWI
9.Gold : The Anatomy of the Bottoming Process - Rambus_Chartology
10.Bitcoin Falls 20% as Mobius and Chinese Regulators Warn - GoldCore
Last 7 days
1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - 19th Oct 17
Virgin Media Broadband Down, Catastrophic UK Wide Failure! - 19th Oct 17
The Passive Investing Bubble May Trigger A Massive Exodus from Stocks - 18th Oct 17
Gold Is In A Dangerous Spot - 18th Oct 17
History Says Global Debt Levels Will Lead to Another Crisis - 18th Oct 17
Deflation Basics Series: The Quantity Theory of Money - 18th Oct 17
Attractive European Countries for Foreign Investors - 18th Oct 17
Financial Transcription Services – What investors should know about them - 18th Oct 17
Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures - 18th Oct 17
Surge in UK Race Hate Crimes, Micro-Racism, Sheffield, Millhouses Park, Black on Asian - 18th Oct 17
Comfortably Numb: Surviving the Assault on Silver - 17th Oct 17
Are Amey Street Tree Felling's Devaluing Sheffield House Prices? - 17th Oct 17
12 Real-Life Techniques That Will Make You a Better Trader Now - 17th Oct 17
Warren Buffett Predicting Dow One Million - Being Bold Or Overly Cautious? - 17th Oct 17
Globalization is Poverty - 17th Oct 17
Boomers Are Not Saving Enough for Retirement, Neither Is the Government - 16th Oct 17
Stock Market Trading Dow Theory - 16th Oct 17
Stocks Slightly Higher as They Set New Record Highs - 16th Oct 17
Why is Big Data is so Important for Casino Player Acquisition and Retention - 16th Oct 17
How Investors Can Play The Bitcoin Boom - 16th Oct 17
Who Will Be the Next Fed Chief - And Why It Matters  - 16th Oct 17
Stock Market Only Minor Top Ahead - 16th Oct 17
Precious Metals Sector is on Major Buy Signal - 16th Oct 17
Really Bad Ideas - The Fed Should Have And Defend An Inflation Target - 16th Oct 17
The Bullish Chartology for Gold - 15th Oct 17
Wikileaks Mocking US Government Over Bitcoin Shows Why There Is No Stopping Bitcoin - 15th Oct 17
How to Wipe Out Puerto Rico's Debt Without Hurting Bondholders - 15th Oct 17
Gold And Silver – Think Prices Are Manipulated? Look In The Mirror! - 15th Oct 17
Q4 Pivot View for Stocks and Gold - 14th Oct 17
Gold Mining Stocks Q3’17 Preview - 14th Oct 17
U.S. Mint Gold Coin Sales and VIX Point To Increased Market Volatility and Higher Gold - 14th Oct 17
Yuan and Gold - 14th Oct 17
Tips for Avoiding a Debt Meltdown - 14th Oct 17
Bitcoin Hits New All-Time High Above $5,000 As Lagarde Concedes Defeat and Jamie Demon Shuts Up - 13th Oct 17
Golden Age for GOLD, Dark Age for the Stock Market - 13th Oct 17
The Struggle for Bolivia Is About to Begin - 13th Oct 17
3 Reasons to Take Your Invoicing Process Mobile - 13th Oct 17
What Happens When Amey Fells All of a Streets Trees (Sheffield Tree Fellings) - Video - 13th Oct 17
Stock Market Charts Show Smart Money And Dumb Money Are Moving In Opposite Directions—Here’s Why - 12th Oct 17
Your Pension Is a Lie: There’s $210 Trillion of Liabilities Our Government Can’t Fulfill - 12th Oct 17
Two Highly Recommended Books from Bob Prechter - 12th Oct 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

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

© 2005-2017 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

Catching a Falling Financial Knife